ICICI Bank to raise Rs 10,000 crore via bonds

The overall loan book is expected to expand by 10-12 per cent this financial year

I CICI Bank plans to raise up to Rs 10,000 crore via tier-1 bonds for its capital base and business growth.

Rating agency ICRA has assigned an ‘AA+ (hybrid)’ rating to the proposed offering of the private bank. It is described as a hybrid subordinated instrument, with equity-like loss-absorption features.

The distributable reserves that can be used to service the coupon in case of inadequate profit or a loss stood at a comfortable 10.4 per cent of risk-weighted assets as on June 30, ICRA stated. The reserves available for servicing the coupon (interest payments) improved from 7.7 per cent of risk weighted assets