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ICICI to raise Rs1,200 cr by selling bonds

ICICI to raise Rs1,200 cr by selling bonds
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First Published: Tue, Mar 24 2009. 08 25 PM IST
Updated: Tue, Mar 24 2009. 08 25 PM IST
Mumbai: ICICI Bank Ltd has said that it would raise Rs1,200 crore through sale of bonds. The issue carries a green-shoe option of Rs300 crore.
“It is a 15 year paper with a call option after 10 years,” an ICICI Bank spokesman said adding: “The paper will carry a coupon of 9.95%.”
The bank’s capital adequacy ratio at end-December stood at 15.6%, well over the regulatory requirement of 9%.
“We have a lot of room to raise tier-II capital as tier-I for us is 12% and tier-II less than 4%. Every quarter we raise some amount of tier-II consistently. This quarter, the amount is little lower than previous quarters. Other banks also raise tier-II regularly,” the spokesman added.
An analyst with a Mumbai-based brokerage, on condition of anonymity, said: “The bank could be raising the tier-II capital to meet some asset liability mismatch as many corporates have not renewed their bulk deposits with the bank. Additionally, it is also to meet some project finance needs.’’
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First Published: Tue, Mar 24 2009. 08 25 PM IST