Mumbai, May 12: ICICI Bank has raised £350 million in the European market as part of its medium-term note (MTN) programme.
An MTN is essentially a borrowing facility where the debt usually matures in 5-10 years but the term may be as short as one year.
The ICICI note is a 3-year issue and the first such deal by an Indian issuer in the sterling market.
The MTN generated good investor response and was priced at a spread of 83 basis points over UK gilts.
According to the country’s second-largest bank, UK investors lapped up 95 per cent of the issue while other European participants picked up the remaining.
While 80 per cent of the securities were sold to fund managers, 17 per cent went to insurance agencies and 3 per cent to banks and pension funds.
The offering was managed by BNP Paribas, Citigroup, Deutsche Bank and Hongkong and Shanghai Banking Corporation.
Over the past few months, ICICI Bank had been raising money from overseas markets to fund its increased international presence and meet domestic business requirements.
More than a fortnight back, the bank had announced that it would raise around Rs 20,000 crore through a combination of domestic issue and American Depository Shares (ADS). The mop-up had been planned in view of the strong corporate investment in the pipeline. The offerings are likely to be made in June.