Mumbai: ICICI Bank Ltd, India’s largest private sector bank, plans to raise money in Australian dollars from its Bahrain branch under its $5 billion medium-term note programme, according to two rating agencies that have rated the bonds.

Moody’s Investors Service in a note on Thursday said it assigned a ‘Baa2’ rating to the proposed bonds, which have a tenure of five years.

“The bonds will be listed on the Singapore Stock Exchange. ICICI’s baseline credit assessment is underpinned by the bank’s solid franchise as India’s largest private sector bank by assets, as well as its strong capitalization, liquidity, and earnings profile," Moody’s said in the note posted on its website.

The agency also took “into consideration the bank’s high borrower concentration in the form of its mandatory government securities portfolio, its improving but still weak asset quality when compared to its global peers, the challenging domestic operating environment and the intense competition it faces in its operating markets."

Separately, Standard and Poor’s Ratings Services assigned the bond a ‘BBB-’ long-term rating.

“The proposed notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of ICICI Bank. They shall at all times rank at par among themselves and with all other unsecured obligations of the bank," S&P said.

Spokespersons for ICICI Bank could not be reached immediately.

Bloomberg reported that ICICI Bank will raise 100 million Australian dollars through the bond.

Australia and New Zealand Bank Group Ltd (ANZ) and Hong Kong and Shanghai Banking Corp. Ltd (HSBC) are bankers to the issue.

The bonds will be priced “in UK time later today (Thursday)," Bloomberg said, citing a person familiar with the matter.

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