1 week ago
ICICI Bank Doubles Overseas Borrowing Limit to $5 Billion
ICICI Bank has received permission to borrow up to $5 billion from investors in other countries.
This is twice its earlier borrowing limit of $2.5 billion.
It can use bonds, notes and offshore certificates of deposit to raise the money.
The bank can borrow in different-sized offerings and choose different repayment periods and interest rates.
It has not said exactly when all the borrowing will happen.
ICICI Bank recently raised $750 million through a five-year dollar bond.
It had also raised $1 billion in July, bringing its reported dollar debt fundraising to $2.05 billion.
Other Indian banks are also borrowing overseas.
The Reserve Bank of India has offered swap facilities, but the reported closing dates differ for FCNR(B) deposits and other foreign-currency borrowing.
ICICI Bank’s board approved doubling its overseas borrowing limit from $2.5 billion to $5 billion.
The bank may issue bonds, notes and offshore certificates of deposit in multiple tranches, maturities and interest rates.
ICICI Bank has not disclosed the timing, individual issue sizes, maturities or pricing of future offerings.
The bank raised $750 million earlier in the week, bringing its reported dollar debt fundraising to $2.05 billion.
The decision comes as Indian banks increase overseas borrowing amid changing Reserve Bank of India swap-facility deadlines.
- Who
- ICICI Bank, its board and overseas fixed-income investors.
- What
- Approval to raise up to $5 billion through overseas bonds, notes and offshore certificates of deposit, doubling the previous $2.5 billion limit.
- Where
- International debt markets and overseas markets.
- When
- The decision was disclosed in a stock exchange filing on Friday, August 21; the articles do not specify a year.
- Why
- To provide flexibility to raise foreign-currency funding in different tranches and at different maturities and prices, depending on investor demand and market conditions.
Key facts
- Revised borrowing limit
- Up to $5 billion, compared with the previous $2.5 billion limit
- Permitted instruments
- Bonds, notes and offshore certificates of deposit
- Existing medium-term note programme
- $7.5 billion
- Recent ICICI Bank fundraising
- $750 million through a five-year US dollar bond earlier in the week and $1 billion through a single-tranche bond in July
- Reported dollar debt fundraising
- $2.05 billion
- Recent bond terms
- The $750 million bond had a 105-basis-point spread over five-year US Treasuries; the July bond had a 5.46% coupon and was oversubscribed 2.3 times
- Share performance
- Shares traded at Rs 1,417.50, up 0.4% in late-morning trading, and were up about 5.9% in 2026; the Nifty 50 was down about 7.2%
- RBI facility timelines
- One report says the FCNR(B) concessional window closed or was advanced to August 31 instead of September 30; it says the ECB and OFCB swap facility continues until December 31, while another report describes an ECB facility as available through the end of 2026
Quotes
ICICI Bank
Indian private-sector bank speaking in a stock exchange filing
“The money will be raised through issuances of bonds, notes and offshore certificates of deposits in overseas markets for a revised limit of up to $5 billion.”
financialexpress.com
Sources
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