India's ICICI Bank, Axis Bank tap dollar debt again in less than two months, bankers say
India's ICICI Bank, Axis Bank tap dollar debt again in less than two months, bankers say By Dharamraj Dhutia
MUMBAI, Aug 7 (Reuters) - Two Indian private sector lenders have tapped U.S. dollar denominated debt market for the second time in less than two months, to raise $300 million each, two merchant bankers said on Friday.
Here are a few details of the issues:
ICICI Bank ICBK.NS will issue five-year bonds at a coupon of 5.3520%, payable semi-annually
Axis Bank AXBK.NS 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
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
(Reporting by Dharamraj Dhutia)
((Dharamraj.Dhutia@thomsonreuters.com;))