ICICI Bank raises $750 million through unsecured debt
The country’s largest private lender, ICICI Bank has raised Rs 3,498 crore, issuing unsecured debt from its Bahrain branch. The move is aimed to arrange capital for expanding its overseas business operations.
The bank said that around 250 investors responded to the issue of 64-month fixed rate notes to be listed on Singapore Stock Exchange. A spokesperson from the bank added, “ICICI Bank is raising long-term funds for meeting business requirements of its overseas branches, including financing the existing loan book and meeting growth opportunities.”
However, the bank, with a capital adequacy ratio (CAR) of 17.7 per cent, added that the recent bond issue has nothing to do with its $5-billion medium-term note (MTN) program worth around $1.7 billion, aimed to get bond debt funding on a regular and continuous basis without needing a full suite of legal documents each time of issuing notes.
Bank’s Tier-I CAR stands at 13.3 per cent which is highest among any other bank of India. Other banks including Axis Bank, Public sector lenders Union Bank of India, IDBI Bank and Bank of Baroda has also been looking for raising funds from the overseas bond market.