ICICI Bank raises $1 billion in syndicated loans

ICICI Bank, the country's second largest commercial bank, continues to raise funds from the international markets with ease. The bank has signed an agreement to raise up to $1 billion in syndicated loans from a group of international banks.

This is the single largest syndicated loan for an Indian bank borrower.

The yen-denominated loan facility is split into three tranches. $350 million would have a tenure of 364 days while $450 million would be payable after two years. The balance $200 million would have a tenure of three years. Interest rates for the facility have not been disclosed. ICICI Bank concluded this transaction in a record time of one month from the date the mandate was awarded.

ICICI Bank said there has been strong investor interest in the syndication. A total of 26 banks participated in the syndication facility — the widest participation for any Indian bank syndication in the international markets. Banca Intesa, The Bank of Tokyo-Mitsubishi, Bayern LB, BNP Paribas, Calyon, Chinatrust Commercial Bank, Fortis Bank, HSBC, Lloyds TSB Bank, Mizuho Corporate Bank, Natixis, The Royal Bank of Scotland, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation were the mandated Lead Arrangers for the syndication.

"We are delighted with the widespread interest this deal has generated from the leading banks across the globe. It is heartening to see a number of new players participating in this deal", said Chanda Kochhar, deputy managing director, ICICI Bank

ICICI Bank has been raising substantial funds from the domestic and international markets to satisfy record credit growth, both in corporate and retail segments. The bank recently became the first Indian bank to issue tier-I perpetual bonds in the international markets with a $340 million issue. The bank had also raised more than Rs8,000 crore from a follow-on public issue in the domestic and international markets last year.