Here are a few details of the issues:
* ICICI Bank will issue five-year bonds at a coupon of 5.3520%, payable semi-annually
Indian government bonds declined early Friday, reversing some weekly gains. Higher oil prices and global rate fears impacted investor sentiment before a large debt sale. New Delhi plans to raise 320 billion rupees through bond auctions later today. The benchmark Brent crude contract saw a significant price increase since Tuesday. The Reserve Bank of India maintained its repo rate, easing immediate inflation concerns.
* Axis Bank will raise these funds through reissue of its 5.3480% June 2031 bonds, which will take the outstanding issuance to $600 million
* Both the debt placements will close for subscription next week and will be placed privately
Live Events
* Last month, ICICI Bank raised $1 billion through five-year bonds at a coupon of 5.46%, in what was the largest such issue by an Indian lender in nearly 14 years
* In June, Axis Bank had raised $800 million through a dual-tranche debt issuance, which included the primary sale of the five-year papers and $500 million of perpetual notes at a 6.875% annual coupon, payable semi-annually* The notes will be listed on the India International Exchange IFSC and NSE IFSC
* The bonds are being issued under the Reserve Bank of India’s lower-cost hedging facility that allows eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually, and lowers overall cost of borrowing.