ICICI Bank has raised around Rs 3,500 crore through an overseas bond issue, the bank said in a press release. The “5.33 year” fixed-rate paper was issued through the bank’s Bahrain branch and saw a total subscription of over $3 billion from over 250 investors.
Bank of America, Credit Suisse and HSBC Holdings were the lead arrangers on the issue. Indian banks are raising money overseas to make the most of the easy interest rates there. Some of the other banks that recently utilised the overseas bond market are State Bank of India and IDBI Bank.
While State Bank Of India raised $750 million through a five-year bond issue at a coupon of 4.5 percent through its London branch, IDBI Bank raised $225 million through a one-year syndicated bond issue at 200 basis points over the then Libor rate.
It is a general opinion that other banks will also banks will rush in with their foreign currency borrowing programmes before interest rates harden in global financial centres.
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