ICICI Bank hits Capital Market, raises Rs. 4000 crores

India's largest private sector lender, ICICI Bank,  has entered the capital markets, raising Rs 4,000 crore in a bond issue amidst hopes of better credit growth through the busy season from October to March. The bank sold infrastructure bonds at the cost lower than the earlier series more than a year ago, which had offered 9.75% for a seven-year maturity.

At 9:15 AM ICICI Bank share price opened at Rs. 241.20, just a tad above its previous day’s close of Rs. 241.15.

The recent series of infrastructure bonds proposed 7.6% for a similar maturity. The benchmark return has also fallen significantly during the period.

Mutual funds, including Kotak, ICICI Prudential, DHFL Pramerica, Reliance, and SBI, along with some large insurers are believed to have bought the securities. It is a prudent investment with an attractive yield in the top-rated category. ICICI Prudential MF and ICICI Prudential Insurance together subscribed to almost half the issue size. The fact is confirmed by three anonymous investors.

At 9:53 Am, ICICI Bank share price is trading at Rs. 241.95 with the rise of 0.33%. So far a total of 12.8 lakh shares have changed hands over the NSE trading counter.

The Reserve Bank of India had permitted banks to issue long-term infrastructure bonds over two years ago to ensure fund flow for credit-starved sectors. Axis Bank raised Rs 5,000 crore at similar interest and maturity about two weeks ago. 

In early September, HDFC Bank raised Rs 6,700 crore by selling infrastructure bonds that offered 7.95% with a 10-year maturity. Such securities will help top-rated ICICI Bank stretch credit in infrastructure and affordable housing sectors. ICICI Bank is also looking to sell dollar-denominated bonds to overseas investors.

ICICI Bank is among the top 500 stocks that are picked by Dynamic Levels for the Quarter. For details on ICICI Bank, kindly visitICICI Bank share price history page of the Dynamic Levels website.