ICICI Bank raises Rs 3,000 cr via infra bonds
ECONOMY & POLICY

ICICI Bank raises Rs 3,000 cr via infra bonds

For the first time in four years, ICICI Bank, India's largest private sector lender by assets, raised Rs 3,001 crore through infrastructure bonds, reflecting the emerging optimism in building ports and roads in an economy that is expected to rebound sharply as vaccinations and the slowing of infections raise hopes.

The bonds had a yield of 6.45% and a seven-year maturity. Those papers received a AAA (Stable) grade from ICRA.

Through the bidding process, at least two pension funds, LIC New Pension Scheme (NPS) and UTI NPS, as well as fund houses like Aditya Birla MF, Tata MF, and insurer Bajaj Allianz, are likely to have subscribed to those papers. About a half-dozen bids were obtained and retained by the bank.

The funds will be used to fund infrastructure projects as well as low-cost, affordable housing. In 2016-17, ICICI Bank raised Rs 4,000 crore in infrastructure bonds.

Some banks are said to have lapped up those top-rated debt securities through a bidding process only to sell down their holdings to different mutual funds including SBI, HDFC and Tata Life Insurance.

Ajay Manglunia, managing director of JM Financial's debt capital market, told the media that Infrastructure bonds have returned to the market after a long period of absence, implying that the borrower has pockets of deployments. As the unlocking programme unfolds, demand for infrastructure credit is gradually rising.

The issue's core size was set at Rs 1,000 crore, with an option to retain up to Rs 4,000 crore in subscriptions. Pension funds are more likely to have owned larger sums than mutual funds, with single bids ranging up to Rs 600 crore.

ICICI Bank's standalone net profit for the financial year ended March 31, 2021, increased by 104 % to Rs 16,192.68 crore.

The lender reported a 260.47 % year-over-year (y-o-y) increase in net profits in the January-March quarter.

Total loans increased 14% year over year (y-o-y) to Rs 7,33,729 crore on March 31, 2021, up from Rs 6,45,290 crore the previous year.

Image Source


Also read: Vector Green Energy to raise around $169 mn through green bonds

For the first time in four years, ICICI Bank, India's largest private sector lender by assets, raised Rs 3,001 crore through infrastructure bonds, reflecting the emerging optimism in building ports and roads in an economy that is expected to rebound sharply as vaccinations and the slowing of infections raise hopes. The bonds had a yield of 6.45% and a seven-year maturity. Those papers received a AAA (Stable) grade from ICRA. Through the bidding process, at least two pension funds, LIC New Pension Scheme (NPS) and UTI NPS, as well as fund houses like Aditya Birla MF, Tata MF, and insurer Bajaj Allianz, are likely to have subscribed to those papers. About a half-dozen bids were obtained and retained by the bank. The funds will be used to fund infrastructure projects as well as low-cost, affordable housing. In 2016-17, ICICI Bank raised Rs 4,000 crore in infrastructure bonds. Some banks are said to have lapped up those top-rated debt securities through a bidding process only to sell down their holdings to different mutual funds including SBI, HDFC and Tata Life Insurance. Ajay Manglunia, managing director of JM Financial's debt capital market, told the media that Infrastructure bonds have returned to the market after a long period of absence, implying that the borrower has pockets of deployments. As the unlocking programme unfolds, demand for infrastructure credit is gradually rising. The issue's core size was set at Rs 1,000 crore, with an option to retain up to Rs 4,000 crore in subscriptions. Pension funds are more likely to have owned larger sums than mutual funds, with single bids ranging up to Rs 600 crore. ICICI Bank's standalone net profit for the financial year ended March 31, 2021, increased by 104 % to Rs 16,192.68 crore. The lender reported a 260.47 % year-over-year (y-o-y) increase in net profits in the January-March quarter. Total loans increased 14% year over year (y-o-y) to Rs 7,33,729 crore on March 31, 2021, up from Rs 6,45,290 crore the previous year. Image Source Also read: Vector Green Energy to raise around $169 mn through green bonds

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement