&w=3840&q=100)
ICICI Bank raises ₹1,000 cr via Tier-II bonds at 7.45% amid demand
Subrata Panda
ICICI Bank, India's second-largest private sector lender, on Thursday tapped the domestic debt capital market to raise ₹1,000 crore through Tier-II bonds at a coupon of 7.45 per cent, said sources aware of the development.
The base issue was ₹500 crore and had a green shoe option of ₹500 crore. The Tier-II bonds have a maturity of 15 years, with a call option available after 10 years, sources said.
'Amidst a volatile and uncertain rate environment, initial market indications were in the range of 7.50 per cent. However, strong investor interest—driven by the fact that this is ICICI Bank's first Tier-II issuance of the fiscal year (FY26) and the relatively moderate issue size—enabled the bank to achieve tighter pricing. For a long-dated Tier-II instrument with a 10-year call, the cut-off yield of 7.45 per cent is considered competitive and reflects robust investor appetite despite prevailing rate uncertainty,' said a market participant.
Tier-II bonds are subordinated debt instruments issued by banks to strengthen their Tier-II capital—a key component of regulatory capital under Basel III norms. These bonds carry higher risk than senior debt but rank above equity in the capital structure.
As of March 2025, ICICI Bank's capital adequacy ratio stood at 16.55 per cent, with CET-I ratio at 15.94 per cent and Tier-II at 0.61 per cent.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Tata Steel executes first fully digital import transaction using e-Bill of Lading
Tata Steel completed its first paperless import transaction under a Letter of Credit, fully backed by digital processes, the company announced on Friday. The company carried out first digitized import shipment of coal using an Electronic Bill of Lading (eB/L) with full bank integration. In its efforts towards fully digitised and sustainable global trade, the company used eB/L for its coal import shipment from Queensland , Australia to Dhamra Port in Odisha , India. The transaction, backed by digital platform provider ICE Digital Trade's eBL solution, involved coordination between Tata Steel India, ICICI Bank , TS Global Procurement, and Standard Chartered Bank (Singapore). Electronic Bill of Lading (eB/L) is a digital version of the traditional paper document used in global shipping. Tata Steel aims to make its supply chain eco-friendly, as a step to fulfil its sustainability objective of achieving Net Zero by 2045. Live Events "This is a big step forward in making our supply chain smarter and more eco-friendly. By embracing eB/L, we are cutting through traditional bottlenecks and setting a new standard for how goods move globally. It reflects our commitment to building a supply chain that is not just efficient and secure, but also environmentally responsible," said Peeyush Gupta, Vice President - TQM, GSP & Supply Chain, Tata Steel. The digital transaction in imports and exports enables faster access to documents and higher compliance, the company said. 'This successful integration of banks and digital documentation marks a leap in trade finance. It enables faster access to documents, brings efficiency, and ensures higher compliance - everything a modern finance ecosystem needs," said Sandeep Bhattacharya, Vice President - Financial Control & Business Analytics, Tata Steel. By removing the need for physical courier services and paperwork, the new system significantly speeds up documentation and reduces risks. The company is taking several measures towards digitisation and environmental sustainability as it executed a blockchain-enabled, paperless trade transaction of steel export to a customer in UAE in 2021. Later in the year in November, the Company executed a blockchain-enabled paperless export order with a metals major in Bangladesh. Banks play a significant role in such transactions as overseas tech-enabled transactions pave the way for future foreign trade . 'The eB/L solution represents ICICI Bank's commitment to transform international trade through technology-driven innovation and strategic global partnerships, while adhering to industry-standard compliance. This is also part of our journey from Bank-to- Bank Tech—an evolution from a traditional bank to a tech-led Bank Tech institution," said Anubhuti Sanghai, Head of Transaction Banking, ICICI Bank. Digitisation of trade finance reduces timelines, eliminates risks and improves transparency in the process. 'The success of this landmark transaction marks a significant milestone in the digitisation of trade finance, significantly reducing timelines, eliminating risks and improving transparency. This achievement underscores our commitment to driving innovation and efficiency in global trade, while delivering greater speed, security and transparency to clients," said Maisie Chong, Global Head, Standard Chartered Bank. Tata Steel is working on more blockchain-based paperless transactions in geographies like Bangladesh, Europe, and the Middle East covering three different shipment modes - Road, Breakbulk, and Containers.
&w=3840&q=100)
Business Standard
19 hours ago
- Business Standard
Bank credit growth remains below 10% till June-end, shows data
Bank credit growth slowed further to 9.5% YoY in the fortnight ending June 27, with deposits growing at 10.1%, outpacing credit growth, data showed. Subrata Panda Mumbai Listen to This Article The pace of bank credit growth slowed further in the fortnight ending 27 June, with year-on-year (YoY) growth at 9.5 per cent — a sharp decline from the over 17 per cent growth recorded during the same period last year. During the same period, deposits in the banking system grew by 10.1 per cent YoY, once again outpacing credit growth. In absolute terms, during the fortnight, credit rose by Rs 1.69 trillion, while deposits increased by Rs 3.55 trillion. So far in FY26, incremental credit stands at Rs 2.39 trillion, whereas incremental deposits have grown by Rs 8.45 trillion, data
Time of India
a day ago
- Time of India
SBI board to meet July 16 to consider Basel III bond fundraising
State Bank of India 's board will meet on July 16 to consider and approve fund-raising plans for FY26 through issuance of Basel III-Compliant bonds. The bank's central board will discuss the plan for issuance of capital bonds denominated in Indian rupees, SBI said in a late filing on Thursday. Banks are allowed to issue tier-II and additional tier-I bonds compliant with Basel III capital norms. SBI had raised a total of Rs15,000 crore through tier-II bonds and Rs 5,000 crore through additional tier-I bonds in the previous financial year. Tier-II bonds were raised in two tranches at 7.42% and 7.33%. Additional-tier I bonds were priced at 7.98% in October last year. The board meeting comes at a time when the bank is also planning to tap the equity market to raise capital. The bank plans to raise Rs25,000 crore through qualified institutional placement of shares. This could be the country's largest QIP if it is fully subscribed. Live Events The objective of the capital raise is to augment the bank's common equity tier-I or core equity capital rather than for growth purposes, SBI Chairman CS Setty had said in a post earnings press meet in May. 'Even without raising additional capital, the growth will not be impacted,' Setty said. The bank's CET-1 capital stood at 10.81% at the end of March, higher than the minimum regulatory requirement, while overall capital adequacy ratio was at 14.25%.
