ICICI Bank raises Rs 5,000 crore through 10-year bonds

ICICI Bank has raised Rs 5,000 crore through 10-year bonds at a coupon (interest rate) of 6.96 per cent to fund regular business operations. The bonds would be listed in the relevant segment of the NSE. 

The bonds are rated “AAA” with stable outlook, the bank informed the stock exchange. The money was raised through private placement of bonds. The coupon is about 45-basis points above the yield on 10-year Government of India bonds.

Compared to private sector entities, public sector-owned firms are able to get 5-10 basis points finer rates, bond dealers said.

Meanwhile, Union Bank raised Rs 1,500 crore in capital through additional tier I bonds (AT1 bonds). The issue size was Rs 500 crore with a green shoe option of Rs 1,000 crore. The coupon rate was 8.4 per cent, according to a filing with the BSE.

Last week, SBI raised about Rs 3,974 crore in capital through the AT1 instrument (rated AA+) with the coupon for bonds fixed at 7.55 per cent. It was cheaper by 17-basis points over its last issuance in September 2021.

AT1 bonds are perpetual debt instruments that banks are allowed to raise under the Basel III capital framework. They form a part of Tier I capital for banks.