Industrial Credit and Investment Bank of India (ICICI) and Industrial Finance Corporation (IFCI) have raised Rs 1175 crore from the debt market in September by way of private placement.
ICICI closed its offer for subscription on September 30 after raising Rs 800 crore from the debt market while IFCI closed is debt issue on September 25 after raising Rs 375 crore.
Besides, raising money from the debt issue, IFCI has raised another Rs 281 crore by way of certificate of deposits (CDs). "We have raised an aggregate amount of Rs 656 crore from the market from the debt issue and CDs since September 19," said sources from IFCI. The Series XVI of IFCI for an aggregate amount of Rs 250 crore received an over-ubscribtion of Rs 125 crore. The issue offered 11.50 per cent for one year, 12 per cent for two years and 12.5 per cent for three years maturity. ICICI offered 10.50 per cent for one year, 11.75 per cent for paper maturing in three years, 12.5 per cent for five years, 13 per cent for seven years and 13.5 per cent for 10 years. Interest on the 3, 5 and 7 year paper was payable semi-annually and on the 10 year paper was payable annually.
Although, ICICI is always present in the debt market by offering an on-tap issue, since the first week of September the FI had announced a set of coupons for investment of different maturity.
"ICICI decided to close the offer as it raised the required amount from the debt market. From today if anyone desires to invest with ICICI, it will be considered on a case to case basis," said senior officials from the company. While IFCI has decided to enter the debt market only after the credit policy for the second half of the current financial year is announced. ICICI had appointed ICICI-Securities, Lodha Capital Market and R R Financial as arranger to the issue. According to sources, the arrangers had raised Rs 225 crore from the market while the rest of the collection was done by the ICICI.
While IDBI has already raised Rs 750 crore from debt market through Omnibond Series VIII.
