ICICI Bank raises Rs 5,000 crore through 10-year bonds

ICICI Bank has raised Rs 5,000 crore via 10-year bond at a coupon (interest) of 6.96 percent to fund regular business activities. The bonds would be listed in the relevant segment of the NSE.

The bonds have an 'AAA' rating with a stable outlook, the bank said to the stock exchange. The money was raised through private placement of bonds. The coupon is approximately 45 basis points above the 10-year government bond yield of India.

Compared to private sector entities, public sector-owned companies can get 5-10 basis points higher rates, bond dealers said.

Meanwhile, Union Bank has raised Rs 1,500 crore in capital through additional tier I bonds (AT1 bonds). The issue size was Rs 500 crore with a green shoe option of Rs 1,000 crore. The coupon rate was 8.4 percent, according to a filing with the BSE.

Last week, SBI raised about Rs 3,974 crore in capital through the AT1 instrument (rated AA+) with a bond coupon set at 7.55 percent. It was 17 basis points cheaper than its last issue in September 2021.

AT1 bonds are perpetual debt instruments that banks are allowed to raise under the Basel III capital framework. They are part of the Tier I capital for banks.