ICICI Bank raises over $95 mn via Chinese debt market

Private sector lender ICICI Bank on Thursday raised 600 million yuans from the Chinese debt market (Dim Sum bonds) or a little over $95 million, at a coupon of 4 per cent, merchant banking sources said in Mumbai.

This is the fourth time that the Mumbai-based lender has tapped the Dim sum bond market and has so far raised 2,050 million yuans.

According to merchant bankers, the three-year money has been raised by ICICI's Bahrain branch and will be listed on the Singapore Stock Exchange. The issue is part of the bank's $7.5 billion medium term note programme.

Dim sum bonds are denominated in the Chinese currency and are issued in the Hong Kong market, and therefore resident Chinese investors cannot subscribe to these instruments.

When contacted, an ICICI bank spokesman refused to comment. It can be noted that the Chanda Kochhar-led bank first tapped the Chinese debt market in 2012 and raised 1,000 million yuans in two tranches.

The bank again went to this market last year and raised 650 million yuans. The current issuance was arranged by StanChart and Mitsubishi UFG.

Meanwhile, the international rating agency Moody's in a note from Singapore, said it has assigned Baa2 to these senior unsecured notes.

Assigning the Baa2 rating Moody's said the rating is anchored on the bank's Baa3 baseline credit assessment and the high likelihood of systemic support in the event of a crisis. It further said the Baa2 rating is at the same level as the foreign currency debt ceiling for India. The bank's foreign currency deposit ratings of Baa3/P-3 are constrained by the sovereign ceiling.