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ICICI Bank raises ₹4000cr through bonds to fund business growth
October 04, 2023
ICICI Bank shares fell over 1 percent on October 4, a day after the private sector lender raised ₹4,000 crore via long-term bonds. The lender allotted 4,00,000 senior unsecured redeemable long-term bonds in the nature of non-convertible debentures aggregating to ₹4,000 crore on private placement basis, ICICI Bank said in a regulatory filing.
These bonds are unsecured, which means they are not backed by any physical assets but the bank is obligated to pay back the principal amount to the bondholders at maturity as they are redeemable. The bonds can be redeemed after 10 years (October 3, 2033). There are no special rights or privileges attached to the bonds, the bank said.
In its regulatory filing, the lender said that the bonds carry a coupon of 7.57 percent per annum payable annually and were issued at par. They would be listed in the relevant segment of the NSE.
The fundraise via bonds is part of ICICI Bank’s efforts to bolster its capital base and diversify its sources of funding. Listing these bonds on the NSE allows investors to buy and sell them in the secondary market.
In the previous session, ICICI Bank fell more than a percent to close at ₹939.85 on NSE. The stock has risen around 4 percent so far this year and 8 percent in the last year. The stock’s relative strength index (RSI) is at 37.3, which implies that it’s neither in the overbought or in the oversold territory.
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