ICICI hits foreign debt market with $-denominated issue
19 Nov 2013 11:12 PM GMT
This is the second debt raising by the city-based lender this year after it had raised SGD 225 million in January in a seven-year bond sale programme through its Dubai branch offering a coupon of 3.65 per cent. The bond was sold denominated in Singapore dollars.
'We have launched a US dollar-denominated Reg S benchmark bond sale programme for ICICI Bank with an initial price guidance of 375 bps above the US treasury,' one of the merchant bankers said. A US dollar-denominated benchmark bond issue can be to the tune of $500 million and above, while a Singapore-marked can be of SGD 250 million and a Hong Kong sale can be HKD 300 million.
ICICI Bank’s January issue was oversubscribed by over 13 times, which was lead-arranged by StanChart. Last fiscal, ICICI Bank had hit the market five times, raising $1 billion in two instalments of $750 million and $250 million respectively. The bank had also raised a 1 billion-yuan bond earlier in 2012 apart from a 100 million Swiss franc bond.
Domestic corporates have been raising funds from overseas bond markets following high interest rates in India. So far this calendar year, corporates like Reliance, Bharti Airtel, ICICI Bank, HDFC Bank, Exim Bank, Tata Communications and Union Bank had lapped up over $13.5 billion through overseas bond issues between January and mid-May.
But since late May, the appetite for overseas debt almost evaporated as cost of funds jumped in overseas markets too following the US Fed's indication in late May to wind down its $85-billion monthly bond buying programme earlier than expected. Between June and October there was just one issue from the country when HDFC Bank raised $500 million from overseas bonds on 24 October as part of its $2-billion medium-term bonds sale plan.
'We have launched a US dollar-denominated Reg S benchmark bond sale programme for ICICI Bank with an initial price guidance of 375 bps above the US treasury,' one of the merchant bankers said. A US dollar-denominated benchmark bond issue can be to the tune of $500 million and above, while a Singapore-marked can be of SGD 250 million and a Hong Kong sale can be HKD 300 million.
ICICI Bank’s January issue was oversubscribed by over 13 times, which was lead-arranged by StanChart. Last fiscal, ICICI Bank had hit the market five times, raising $1 billion in two instalments of $750 million and $250 million respectively. The bank had also raised a 1 billion-yuan bond earlier in 2012 apart from a 100 million Swiss franc bond.
Domestic corporates have been raising funds from overseas bond markets following high interest rates in India. So far this calendar year, corporates like Reliance, Bharti Airtel, ICICI Bank, HDFC Bank, Exim Bank, Tata Communications and Union Bank had lapped up over $13.5 billion through overseas bond issues between January and mid-May.
But since late May, the appetite for overseas debt almost evaporated as cost of funds jumped in overseas markets too following the US Fed's indication in late May to wind down its $85-billion monthly bond buying programme earlier than expected. Between June and October there was just one issue from the country when HDFC Bank raised $500 million from overseas bonds on 24 October as part of its $2-billion medium-term bonds sale plan.
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