What is ICICI Bank raising Rs.8,000 crore of infrastructure bonds for?
Answer
Answer
ICICI Bank will raise Rs.8,000 crore via infrastructure bonds to bankroll its key projects in transportation, power and affordable housing. These bonds have already been assigned “AAA/Stable” by CRISIL. ICICI will take the call whether to raise the funds in one go or in multiple tranches, as is the normal practice.
It is likely to be a Rs.500 crore issue with a Greenshoe option to retain an additional Rs.7,500 crore. While the paper will have a 10-year tenure, the coupon is not yet announced although it is expected to be around 7.25%. The funds raised via infrastructure bonds will be exempt from the CRR/SLR norms.