ICICI Bank sets bond indicative yield: Source

By Staff
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Google Oneindia News

Hong Kong, Aug 16: ICICI Bank India's second-largest lender, has set an indicative yield range of 250 to 270 basis points above 10-year U.S. Treasuries for its first hybrid tier-I securities issue, market sources said on Wednesday.

It will be the first tier-I issue from an Indian issuer since the central bank authorised lenders in July to raise capital overseas through hybrid instruments like perpetual bonds.

The issue size has not yet been fixed, but a source told Reuters in Mumbai last week that ICICI Bank had planned to sell 0 million in tier I perpetual bonds.

One source said the deal was likely to be priced on Thursday during New York trading hours.

JPMorgan, Merrill Lynch and Morgan Stanley are joint bookrunners for the proposed perpetual issue, callable in 2016.

Moody's Investors Service has assigned a Baa2 rating to the proposed tier I offer, while Standard&Poor's rates it at BB-minus.

Earlier this month, UTI Bank raised 0 million through a 15-year, upper tier II, subordinated bond issue. It was the first subordinated debt issue from an Indian borrower.

State-run Bank of India also planned to raise 0 million through an overseas issue of 15-year, upper tier II bonds, a source told Reuters last week.

REUTERS

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