ICICI Bank Ltd., India’s second- largest lender by market value, hired three banks to help it raise as much as $1 billion from a bond sale, according to three people familiar with the matter.
Barclays Capital, Citigroup Inc. and Deutsche Bank AG will help Mumbai-based ICICI sell bonds with maturities of between five and 10 years as soon as this month, said the people, who asked not to be identified as the plan is private.
“For a bank, raising bonds is like raising deposits,” Apurva Shah, head of research at brokerage Prabhudas Lilladher Pvt., said in a phone interview from Mumbai. “They shouldn’t have a problem finding demand.”
ICICI expects total loan growth of 15 percent for the year ending March 31 as companies and consumers borrow more, Chief Executive Officer Chanda Kochhar said July 31. The bank’s first- quarter profit rose 17 percent to 10.3 billion rupees ($231 million) as it cut provisions and increased fee income.
ICICI spokesman Charudatta Deshpande wasn’t immediately available for comment at his Mumbai office. In Mumbai, Citigroup spokesman Debasis Ghosh and Deutsche Bank spokesman Linus Chettiar declined to comment. Barclays Capital’s Hong Kong-based spokesman Timothy Cuffe also declined to comment.
Reliance Bond Sale
Reliance Industries Ltd., India’s largest company by market value, plans to raise at least $1 billion from a sale of 10- and 30-year bonds denominated in U.S. dollars, according to data compiled by Bloomberg. That sale, to refinance acquisitions and fund investments, would be India’s largest dollar sale by a non- bank business.
Indian companies raised $4.5 billion from international bond sales this year, more than double the amount from 2009, Bloomberg data shows. Deutsche Bank ranks first in managing the deals, followed by HSBC Holdings Plc, Citigroup and Barclays.
Foreign investors more than doubled their holdings of Indian government and company debt this year to $17.3 billion as of Sept. 30, Securities & Exchange Board of India data show.
ICICI sold $500 million of 5 1/2-year bonds denominated in dollars in July, according to Bloomberg data. Spreads on the 5 percent U.S. dollar bonds due January 2016 widened to 296 basis points, the most in over a month, according to Royal Bank of Scotland Plc prices available on Bloomberg.
The Indian lender’s shares are among the best-performing this year on the benchmark Sensex index. They have gained 31 percent compared with a 17 percent rise in the Sensex.
ICICI and local rivals may grow to 2.5 times their size in five years as economic growth accelerates in India, Kochhar told Bloomberg in July. India’s economy may expand 9.4 percent in the year ending March 31, the fastest pace since 2007, the International Monetary Fund said in July.
To contact the reporters on this story: George Smith Alexander in Mumbai galexander11@bloomberg.net Ruth David in Mumbai at rdavid9@bloomberg.net
To contact the editor responsible for this story: Will McSheehy at wmcsheehy@bloomberg.net
http://jodnet.blogspot.com
Barclays Capital, Citigroup Inc. and Deutsche Bank AG will help Mumbai-based ICICI sell bonds with maturities of between five and 10 years as soon as this month, said the people, who asked not to be identified as the plan is private.
“For a bank, raising bonds is like raising deposits,” Apurva Shah, head of research at brokerage Prabhudas Lilladher Pvt., said in a phone interview from Mumbai. “They shouldn’t have a problem finding demand.”
ICICI expects total loan growth of 15 percent for the year ending March 31 as companies and consumers borrow more, Chief Executive Officer Chanda Kochhar said July 31. The bank’s first- quarter profit rose 17 percent to 10.3 billion rupees ($231 million) as it cut provisions and increased fee income.
ICICI spokesman Charudatta Deshpande wasn’t immediately available for comment at his Mumbai office. In Mumbai, Citigroup spokesman Debasis Ghosh and Deutsche Bank spokesman Linus Chettiar declined to comment. Barclays Capital’s Hong Kong-based spokesman Timothy Cuffe also declined to comment.
Reliance Bond Sale
Reliance Industries Ltd., India’s largest company by market value, plans to raise at least $1 billion from a sale of 10- and 30-year bonds denominated in U.S. dollars, according to data compiled by Bloomberg. That sale, to refinance acquisitions and fund investments, would be India’s largest dollar sale by a non- bank business.
Indian companies raised $4.5 billion from international bond sales this year, more than double the amount from 2009, Bloomberg data shows. Deutsche Bank ranks first in managing the deals, followed by HSBC Holdings Plc, Citigroup and Barclays.
Foreign investors more than doubled their holdings of Indian government and company debt this year to $17.3 billion as of Sept. 30, Securities & Exchange Board of India data show.
ICICI sold $500 million of 5 1/2-year bonds denominated in dollars in July, according to Bloomberg data. Spreads on the 5 percent U.S. dollar bonds due January 2016 widened to 296 basis points, the most in over a month, according to Royal Bank of Scotland Plc prices available on Bloomberg.
The Indian lender’s shares are among the best-performing this year on the benchmark Sensex index. They have gained 31 percent compared with a 17 percent rise in the Sensex.
ICICI and local rivals may grow to 2.5 times their size in five years as economic growth accelerates in India, Kochhar told Bloomberg in July. India’s economy may expand 9.4 percent in the year ending March 31, the fastest pace since 2007, the International Monetary Fund said in July.
To contact the reporters on this story: George Smith Alexander in Mumbai galexander11@bloomberg.net Ruth David in Mumbai at rdavid9@bloomberg.net
To contact the editor responsible for this story: Will McSheehy at wmcsheehy@bloomberg.net
http://jodnet.blogspot.com
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