ICICI Bank, Axis Bank tap dollar debt again in less than two months, bankers say
- Both the debt placements will close for subscription next week and will be placed privately
MUMBAI: Two Indian private sector lenders have tapped U.S. dollar denominated debt market for the second time in less than two months, to raise $300 million each, two merchant bankers said on Friday.
ICICI Bank will issue five-year bonds at a coupon of 5.3520%, payable semi-annually.
Axis Bank will raise these funds through reissue of its 5.3480% June 2031 bonds, which will take the outstanding issuance to $600 million.
Both the debt placements will close for subscription next week and will be placed privately.
ICICI Bank sets initial guidance for first dollar bond in nearly 9 years, bankers say
Last month, ICICI Bank raised $1 billion through five-year bonds at a coupon of 5.46%, in what was the largest such issue by an Indian lender in nearly 14 years.
In June, Axis Bank had raised $800 million through a dual-tranche debt issuance, which included the primary sale of the five-year papers and $500 million of perpetual notes at a 6.875% annual coupon, payable semi-annually.
The notes will be listed on the India International Exchange IFSC and NSE IFSC.
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The bonds are being issued under the Reserve Bank of India’s lower-cost hedging facility that allows eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually, and lowers overall cost of borrowing.
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