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 Urban

Reliance, Diehl Advance Pact for Precision-Guided Munitions

Diehl Defence CEO Helmut Rauch and Reliance Group’s Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence’s long-term commitment to the Indian market and its support for the Indian Government’s Make in India initiative. The partnership’s current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the “Vulc..

Next Story
Infrastructure Urban

Modis Navnirman to Migrate to Main Board, Merge Subsidiary

Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company’s growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..

Next Story
Infrastructure Urban

Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025

The Bharat InvITs Association’s industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States’ share of global activity below 15 per cent. Meanwhile, in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?