ICICI Bank may price bondslower than debt

ICICI Bank may price bondslower than debt
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First Published: Thu, Jun 07 2007. 12 38 AM IST
Updated: Thu, Jun 07 2007. 12 38 AM IST
ICICI Bank Ltd, India’s biggest lender to consumers, may price its bonds lower than the debt it sold in January, to raise funds for its UK unit.
The bonds may be priced 7.4% lower at 50 basis points more than three-month Libor, the London interbank offered rate, according to an email sent to investors.
On its bonds maturing in January 2010, ICICI Bank is paying 54 basis points more than three-month Libor, a benchmark for borrowing costs that was fixed at 5.36% on Tuesday. A basis point is 0.01 percentage point.
ICICI Bank will conclude investor presentations for the bond sale, which may raise $500 million (Rs2,050 crore), in Hong Kong on Wednesday, according to the email. The bonds are expected to be priced on Thursday.
The Mumbai-based lender has been expanding overseas, setting up units to serve Indian expatriates in the UK and Canada. The bank’s overseas units are expected to contribute 25% of its revenue within the next three years, up from 17%, according to CEO K.V. Kamath.
The bank hired Citigroup Inc., Lehman Brothers Holdings Inc. and Merrill Lynch & Co. to arrange the three-year bond sale, and will use the funds raised to expand its UK unit. BLOOMBERG
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First Published: Thu, Jun 07 2007. 12 38 AM IST
More Topics: Money Matters | Bonds |