ICICI Bank raises Rs 5,000 cr infrastructure bonds for funding projects
ECONOMY & POLICY

ICICI Bank raises Rs 5,000 cr infrastructure bonds for funding projects

ICICI Bank, a private sector lender, has raised Rs 50 billion through infrastructure bonds to fund projects in sectors such as power and roads.

The coupon on seven-year paper was set at 7.63 percent, about 25 basis points higher than the yield on government benchmark bonds of comparable maturity. This fundraise came a day after the Reserve Bank of India's Monetary Policy Committee decided to raise the policy repo rate by 35 basis points to 6.25 percent.

ICICI Bank's infra bonds had a base issue size of Rs 10 billion, with a greenshoe option of Rs 40 billion. Investors bid close to Rs 200 billion for the issue, according to debt market sources.

In addition to ICICI, banks that raised funds through infrastructure include Bank of Baroda and the country's largest lender, State Bank of India. SBI raised Rs 10,000 crore last week with its first issue of 10-year infrastructure bonds with a coupon of 7.51 percent.

In the current fiscal year, lenders have raised a total of Rs 196 billion through infra bonds (Fy23). In fiscal year 22 (FY22), Indian lenders such as Axis Bank and HDFC Bank raised over Rs 270 billion through infra bonds.

CRISIL has assigned a "AAA" credit rating to ICICI Bank's infrastructure bonds. According to an analyst presentation, its outstanding infrastructure bond borrowings stood at Rs 408.24 billion at the end of September 2022, up from Rs 223.14 billion the previous year.

See also:
IIFCL to invest 2,000 cr in infra bonds and Rs 1,500 cr in InvIT
ICICI Bank to raise Rs 100 bn via infra bonds


ICICI Bank, a private sector lender, has raised Rs 50 billion through infrastructure bonds to fund projects in sectors such as power and roads. The coupon on seven-year paper was set at 7.63 percent, about 25 basis points higher than the yield on government benchmark bonds of comparable maturity. This fundraise came a day after the Reserve Bank of India's Monetary Policy Committee decided to raise the policy repo rate by 35 basis points to 6.25 percent. ICICI Bank's infra bonds had a base issue size of Rs 10 billion, with a greenshoe option of Rs 40 billion. Investors bid close to Rs 200 billion for the issue, according to debt market sources. In addition to ICICI, banks that raised funds through infrastructure include Bank of Baroda and the country's largest lender, State Bank of India. SBI raised Rs 10,000 crore last week with its first issue of 10-year infrastructure bonds with a coupon of 7.51 percent. In the current fiscal year, lenders have raised a total of Rs 196 billion through infra bonds (Fy23). In fiscal year 22 (FY22), Indian lenders such as Axis Bank and HDFC Bank raised over Rs 270 billion through infra bonds. CRISIL has assigned a AAA credit rating to ICICI Bank's infrastructure bonds. According to an analyst presentation, its outstanding infrastructure bond borrowings stood at Rs 408.24 billion at the end of September 2022, up from Rs 223.14 billion the previous year. See also: IIFCL to invest 2,000 cr in infra bonds and Rs 1,500 cr in InvIT ICICI Bank to raise Rs 100 bn via infra bonds

Next Story
Infrastructure Energy

Adani Green Adds 113 MW At Khavda, Capacity Hits 16.6 GW

Adani Green Energy Limited (AGEL) announced that it has operationalised 112.5 megawatts (MW) of renewable power projects at Khavda in Gujarat, raising its total generation capacity to 16,598.6 MW.The company said in an exchange filing that its step-down subsidiary, Adani Renewable Energy Fifty Six Limited, has commissioned a solar project of 87.5 MW, while Adani Green Energy Twenty Five B Limited has operationalised a 25 MW hybrid project at the same site.Following the required regulatory clearances, the company began power generation on 30 September 2025.With these additions, AGEL’s total o..

Next Story
Infrastructure Energy

Centre Sets National Standards For Renewable Power Use

The Central Government, in consultation with the Bureau of Energy Efficiency (BEE), has issued a new notification establishing minimum renewable energy consumption standards for designated power users across India. This framework replaces the 2023 notification and aims to accelerate the adoption of green electricity among consumers nationwide.Titled the Renewable Consumption Obligation (RCO), the regulation mandates that designated consumers — including electricity distribution licensees, open access consumers, and captive power users — must ensure a specified share of their total electric..

Next Story
Infrastructure Energy

Tata Power Signs Rs 12 Billion PPA For 80 MW Green Project

Tata Power Company announced that its renewable arm, Tata Power Renewable Energy Limited (TPREL), has signed a Power Purchase Agreement (PPA) with Tata Power Mumbai Distribution for an 80 MW Firm and Dispatchable Renewable Energy (FDRE) project.The Rs 12 billion project will combine solar, wind, and battery storage systems to provide reliable renewable power during peak demand periods, strengthening grid stability and meeting the growing energy needs of Mumbai.Scheduled for completion within 24 months, the facility is expected to generate around 315 million units (MUs) of clean electricity ann..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?