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ICICI Bank Raises Rs 4,000 Crore through Long-Term Bonds

Oct 4, 2023

By: BlinkX Research Team

ICICI Bank's shares experienced a marginal decline of over 1 percent on October 4, a day after the private sector lender successfully raised Rs 4,000 crore through the issuance of long-term bonds. The bank allocated 4,00,000 senior unsecured redeemable long-term bonds, resembling non-convertible debentures, aggregating to Rs 4,000 crore through a private placement, as per a regulatory filing by ICICI Bank.

These bonds are unsecured, meaning they lack physical asset backing. However, the bank is committed to repaying the principal amount to bondholders upon maturity, as they are redeemable. The redemption period for these bonds is set for 10 years, concluding on October 3, 2033. No distinct rights or privileges are associated with these bonds, clarified the bank.

As detailed in the regulatory filing, these bonds bear a coupon rate of 7.57 percent per annum, payable annually, and were issued at par. They will be listed in the relevant segment of the National Stock Exchange (NSE).

This bond fundraising initiative aligns with ICICI Bank's strategy to fortify its capital base and broaden its funding sources. By listing these bonds on the NSE, investors gain the flexibility to trade them in the secondary market.