ICICI Bank prices $1 billion debt at tighter spread
ICICI Bank has successfully priced a $1 billion five-year dollar bond at a tighter spread than initially expected, marking the largest such issue by an Indian lender in 14 years. The move was supported by favorable hedging facilities introduced by the Reserve Bank of India.
Why it matters
The successful bond sale demonstrates strong investor confidence in Indian private-sector banks and highlights the effectiveness of new central bank policies in lowering fundraising costs.
ICICI Bank has priced a $1 billion five-year dollar bond at a much tighter spread than initially indicated, in the largest such issue by an Indian lender in nearly 14 years, three bankers said.
The bank set the coupon at 100 basis points over U.S. Treasuries, sharply lower than the initial guidance of 130 basis points, for its first dollar debt sale in nearly nine years. The coupon works out to be 5.46%.
The offering attracted $3 billion in bids against a base issue size of $500 million, the bankers said, speaking on condition of anonymity because they were not authorised to speak to the media.
ICICI Bank did not immediately respond to a Reuters request for comment.
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