ICICI Bank, Axis Bank Likely To Raise Rs 5,000 Cr Each Via Bond Sales

Private sector lender is likely to raise up to Rs 5,000 crore through the issuance of long-term bonds on Thursday, sources told Business Standard.

The bonds, which are likely to have a maturity of seven years, include a base size of Rs 1,000 crore and a greenshoe option of Rs 5,000 crore, the sources said. The securities are senior unsecured redeemable long-term bonds in the nature of debentures.

“It is likely that would set a fixed coupon of 7.63 per cent for the bonds,” a source said. On Tuesday, yield on the 10-year benchmark government bond settled at 7.25 per cent while that on the most liquid seven-year government bond closed at 7.22 per cent.

Sources said that another large private lender, Axis Bank, was also looking to raise funds through the issuance of bonds worth Rs 5,000 crore.

is also trying for an infra bond issue placement with a large insurance company. They might want the pricing of the bond close to . It depends on the response from the insurance company on the anchor amount and their views on pricing,” the source said.

have recently embarked on a spree of capital raising through bond issuances. This comes at a time when bank credit off-take continues to sustain at near-historic highs, putting pressure on to mobilise funds to the loan demand amid slower deposit growth.

Earlier this month, State Bank of India, the country’s largest lender, sold 10-year bonds worth a total of Rs 10,000 crore at a coupon of 7.51 per cent.

In October, ICICI bank was said to have sold Rs 4,000 crore worth of seven-year bonds at 7.6 per cent, reports said.

“Growth in Bank credit has accelerated during the financial year which is a positive sign of economic activity picking up though are challenged by a slower growth in deposits. In this context, it is important to see where credit growth is emanating,” Bank of Baroda’s economists said.

RECENT NEWS

JPMorgan Deploys AI Chatbot To Revolutionize Research And Productivity

JPMorgan has deployed an AI-based research analyst chatbot to enhance productivity among its workforce, with approximate... Read more

Private Equity And Banks: The Complex Web Of Leverage

Private equity has emerged as a significant force in the global financial landscape, driving substantial growth and inve... Read more

Financial Watchdog Highlights Unresolved Vulnerabilities In Shadow Banking Sector

The world’s leading financial stability watchdog has issued a warning about the unresolved vulnerabilities within the ... Read more

JPMorgan And Small Caps Lead Market Rally: A Sign Of Economic Optimism

In a week marked by strong financial performance, JPMorgan Chase & Co. reported a 25% rise in profits, and US small-... Read more

Big Banks Vs. Regional Banks: The Battle For Market Share

The financial industry is a competitive landscape where big banks and regional banks vie for market share. Each type of ... Read more

The Evolution Of Philanthropic Advisory Services In Private Banks

The landscape of philanthropic advisory services provided by private banks has undergone a significant transformation. T... Read more