 "ICICI Bank firms up plan to raise ¥50 bn via bonds")
ICICI Bank, the country’s largest private lender, has firmed up plans to raise up to ¥50 billion ($510 million) by selling bonds to institutional investors. Only a week back, the lender had raised money in Chinese yuan and in the past one year, it had raised funds in US dollar, Singapore dollar and Swiss franc.
“The bank has already registered itself in Tokyo Stock Exchange’s Pro-Bond market. This will be the first time that an Indian bank will raise money in Japanese yen. It allows the bank to diversify its source of funding,” a person familiar with the development told Business Standard, requesting anonymity.
The programme information of ICICI Bank’s proposed bond issue shows the bank filed its application with the Tokyo Stock Exchange’s Pro-Bond market on June 18, the same day it raised 650 million Chinese yuan (or $106 million) by selling three-year Regulation S (Reg S) bonds.
The bank is expected to issue the bonds within one year from the date of filing its application. Barclays Securities Japan has been appointed as a dealer to the issue.
ICICI Bank will need to obtain ratings on the bonds, which will be listed on the Tokyo Pro-Bond market, from Japan Credit Rating Agency (JCR).
“As of the date of filing of this document, in respect of the programme under which the bonds are to be issue by the issuer, a rating of BBB+ from JCR has been assigned,” ICICI Bank’s programme information said.
The Tokyo Pro-Bond market is a new bond market for professional investors and offers more convenience to issuers, investors, securities companies and other market participants both in Japan and overseas.
The Tokyo Pro-Bond market allows information disclosure in English. One of the major obstacles for overseas issuers in Japan has been the requirement to provide all necessary documentation in Japanese. Issuers are also allowed to use international accounting standards and issuances can be denominated in a variety of currencies other than Japanese yen.
ICICI Bank has been actively raising money from overseas bond markets in the past one year. The bank raised $1 billion in two installments of $750 million (in August 2012) and $250 million (in November 2012). It also raised $1 billion in Chinese yuan, 100 million in Swiss franc and 225 million in Singapore dollar during 2012-13.
“The bank has already registered itself in Tokyo Stock Exchange’s Pro-Bond market. This will be the first time that an Indian bank will raise money in Japanese yen. It allows the bank to diversify its source of funding,” a person familiar with the development told Business Standard, requesting anonymity.
The programme information of ICICI Bank’s proposed bond issue shows the bank filed its application with the Tokyo Stock Exchange’s Pro-Bond market on June 18, the same day it raised 650 million Chinese yuan (or $106 million) by selling three-year Regulation S (Reg S) bonds.
The bank is expected to issue the bonds within one year from the date of filing its application. Barclays Securities Japan has been appointed as a dealer to the issue.
ICICI Bank will need to obtain ratings on the bonds, which will be listed on the Tokyo Pro-Bond market, from Japan Credit Rating Agency (JCR).
“As of the date of filing of this document, in respect of the programme under which the bonds are to be issue by the issuer, a rating of BBB+ from JCR has been assigned,” ICICI Bank’s programme information said.
The Tokyo Pro-Bond market is a new bond market for professional investors and offers more convenience to issuers, investors, securities companies and other market participants both in Japan and overseas.
The Tokyo Pro-Bond market allows information disclosure in English. One of the major obstacles for overseas issuers in Japan has been the requirement to provide all necessary documentation in Japanese. Issuers are also allowed to use international accounting standards and issuances can be denominated in a variety of currencies other than Japanese yen.
ICICI Bank has been actively raising money from overseas bond markets in the past one year. The bank raised $1 billion in two installments of $750 million (in August 2012) and $250 million (in November 2012). It also raised $1 billion in Chinese yuan, 100 million in Swiss franc and 225 million in Singapore dollar during 2012-13.