ICICI Bank (NYSE: IBN) today successfully priced the first three tranche bond offering by an Indian bank comprised of a cumulative subordinated notes offering qualifying as Upper Tier II capital of US$ 750 million and dual tranche Senior Notes consisting of 3 year US$ Floating Rate Notes of US$ 500 million & 5 year US$ Fixed Rate Notes of US$ 750 million. The offerings were lead managed by Citigroup, Deutsche Bank Securities and Merrill Lynch International.
The aggregate US$ 2 billion offering had an order-book of over US$ 8.0 billion with strong interest from investors across the globe. About 58% of the notes were sold into the US while Asia and Europe contributed for about 21% each. The notes were sold under the Rule 144A/Reg S format.
Mr K. V. Kamath, Managing Director & CEO, ICICI Bank said, “We are indeed pleased to receive such an overwhelming response. This is a remarkable affirmation of the trust that global investors have reposed on ICICI Bank. India is witnessing a paradigm change in its growth trajectory and its position in the world and this enormous rise in international investors’ appetite is yet another confirmation of India’s growth story.”
The Upper Tier II notes carry a coupon of 6.375% and were priced at a spread of 128 basis points over LIBOR. These notes will mature after 15 years but are redeemable at the option of ICICI Bank after ten years with prior approval of the Reserve Bank of India.
The 3year floating rate notes of US$ 500 million were priced at a spread of 54 basis points over 3 month LIBOR. ICICI Bank is the first Indian Bank to offer a floating rate note under the Rule 144A/ Reg S format.
The 5- year fixed rate notes carry a coupon of 5.75% and were priced at a spread of 75 basis points over LIBOR. All the tranches were priced at the tighter end of the revised price guidance.
The proceeds from this issue will be used to fund our international balance sheet and enhance our Tier II capital.
About ICICI Bank: ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs. 2823.73 billion as on September 30, 2006. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is a leading player in the retail banking market and has a network of over 630 branches and extension counters, and 2336 ATMs.
This release is not an offer of notes for sale nor a solicitation of an offer to buy any notes in the United States or any other jurisdiction where it would be unlawful to make such offer or such solicitation. The notes have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction and may not be offered or sold in the United States (as defined in Regulation S under the Securities Act) except pursuant to an exemption from registration requirements of the Securities Act. Accordingly, the notes are being offered and sold only (i) in the United States to qualified institutional buyers in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A and (ii) outside the United States to non-US persons in compliance with Regulation S under the Securities Act.
Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial products and services, our ability to successfully implement our strategy, including our use of the Internet and other technology and our rural expansion, our ability to integrate recent or future mergers or acquisitions into our operations, our ability to manage the increased complexity of the risks we face following our rapid international growth, future levels of impaired loans, our growth and expansion in domestic and overseas markets, the adequacy of our allowance for credit and investment losses, technological changes, investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us, including on the assets and liabilities of ICICI, a former financial institution not subject to Indian banking regulations, our ability to roll over our short-term funding sources and our exposure to credit, market and liquidity risks as well as other risks that are detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
