ICICI Bank has received approval from the Central Board of Direct Taxes (CBDT) for raising funds by issuing infrastructure bonds under Section 88 of the Income Tax Act. The bank is likely to hit the market with a Rs 300-crore bond issue by the end of this month. The issue will also carry a greenshoe option of similar amount.
ICICI Bank has already filed an umbrella prospectus with the Securities and Exchange Board of India (Sebi) for raising Rs 2,500 crore via bonds in the current financial year. As per the prospectus, the bank has the option to retain oversubscription of an equal amount.
Amitabh Chaturvedi, head of retail channel & liabilities group, ICICI Bank, said:
