ICICI Bank raises $1 billion in foreign currency bonds

ICICI Bank has issued foreign currency notes with a face value of $1 billion or about Rs 4,500 crore. This has been sold through the bank’s Dubai branch. The five and a half year tenure bonds will carry a coupon rate of 4.75%. They were issued at a price of 99.665% of the face value, which translates to a spread of 251.5 basis points over the London Inter-bank Offered Rate (Libor).

In a conference call, after its results, ICICI Bank had said that it will be raising overseas funds to meet asset side (lending) demand rather than to refinance maturing liabilities (borrowin). The company said that, along with maturing liabilities, the bank has asset repayments of about $2 billion. The bank’s share price was up 1.2%.

Read the press release sent to the Bombay Stock Exchange.

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