ICICI Bank raises $500 m via fixed rate bonds

ICICI Bank, the second largest bank of the country, has raised five-year fixed rate senior unsecured notes, worth $500 million, maturing in 2010 at a coupon rate of 5.75 per cent.

In Libor terms, the issue is priced at Libor-plus 79 basis points. Last year, the bond issue was priced at Libor-plus 120 basis points.

The objective of this issue is to fund the ongoing asset growth in overseas operations, said a spokesperson of the bank. The notes will rank senior to all subordinated debt issued by the bank in the future.

The issue constitutes the direct, unconditional and unsecured obligations of the bank and will rank pari passu with all its prior obligations.

This includes the bank's existing $300 million senior, unsecured notes due in 2008 and 2009 (both assigned a 'BB+' rating) and the $150 million senior unsecured notes due in 2007 (rated as 'BB+').

The rating assigned on the bank's proposed senior unsecured debt is the similar to S&P's long-term counterparty credit rating on ICICI Bank, which is BB+. It is also in accordance with its global criteria.