Mumbai: ICICI Bank and Canara Bank are likely to raise up to ₹9,000 crore worth of funds through the issuance of 10-year infrastructure bonds in coming days, sources aware of the developments said.
Both ICICI Bank and Canara Bank are likely to issue 10-year bonds. Bidding for the latter’s bond sale may take place next week, sources said.
For Canara Bank, the issuance would mark its first-ever sale of infrastructure debt, which are long-term bonds of at least seven year maturity.
ICICI Bank is looking to raise up to ₹4,000 crore, with the issuance likely to have a base size of ₹1,000 crore and a greenshoe option of ₹3,000 crore. The private lender has been making market enquiries about the feasibility of carrying out the issuance by the end of this month or early next month, sources said.
Canara Bank, in turn, will likely carry out an issuance with a base size of ₹1,000 crore and a greenshoe option of ₹4,000 crore. Bidding for the bond sale may take place next week, sources said.
Both the lenders await the sale of long-term bonds by State Bank of India on Friday, through which the country’s largest lender aims to raise up to ₹10,000 crore.
In July, SBI had successfully raised ₹10,000 crore through 15-year infrastructure bonds at an aggressive spread to comparable government securities as investors showed strong demand for the bank’s debt.
