The Hindu Business Line : ICICI Bank raises $500 m thru' overseas bond issue

ICICI Bank has raised $ 500 million through an international bond offering. The five-year fixed rate bond has a coupon of 5.75 per cent, which is a spread of over 130 basis points over five-year US treasuries, equivalent to asset swap spread of 79 points over Libor, the bank said today.

The bonds were issued through the bank's offshore branch in Singaporeand is expected to finance its international business, said a senior bank official. New branches in Hong Kong and Colombo are likely to be opened shortly, he said.

As part of its corporate portfolio, ICICI Bank wants to target Indian companies borrowing offshore. In the retail space, the bank plans to offer a wide range of products to the NRI community, such as deposits and remittances, the official said.

The offering was increased from an initial size of $ 300 million to $ 500 million on the back of a $ 1.4-billion order book

"We got such a good response because this was an Indian bond issue in the US after a long time," the official said.

Around 100 institutional investors from the US, Europe and Asia participated in the offering. Of these 40 were new investors.

The US contributed 47 per cent to the demand; Asia 35 per cent and 18 per cent came from Europe. Fund managers bought 47 per cent, insurance 28 per cent, banks 22 per cent and retail 3 per cent.

Deutsche Bank and Merrill Lynch were the lead managers for the bond issue.

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