press trust of india
MUMBAI, 18 JUNE: Top private lender ICICI Bank today raised yuan 650 million in an offshore Chinese debt market offering, merchant bankers associated with the bond sale said.
The bank raised the money by selling REG S bonds with a three-year tenor and got a final pricing of four per cent, managing director and head of debt capital markets at Standard Chartered Bank South Asia, Mr Jujhar Singh, said.
India’s largest private sector bank was successful in getting the coupon tightened to four per cent from the initial guidance of 4.125 per cent. The bond sale received subscriptions of Chinese yuan one billion, he added.
The final issue was subscribed by 47 investors across Asia and Europe. Hong Kong contributed for 65 per cent of the money, followed by Taiwan at 20 per cent, Singapore at 10 per cent and European Union at five per cent, he said.
Among the investor types, a majority (65 per cent) came from fund houses, while insurance companies accounted for 20 per cent, private banks 10 per cent and state-run lenders five per cent, Mr Singh said.
This is the third issue by ICICI Bank and makes it the second domestic lender, after IDBI Bank, to sell bonds to offshore Chinese investors.