ICICI Bank raises Rs 2,200 crore capital through tier II

State-owned of India has raised Rs 2,200 crore in capital through tier II to replace maturing instruments and support business.

The Mumbai based lender is working on details for issuing tier I worth 700 crore before the financial year closes next March, according to its executives. The international norms on international banking are compliant with Basel III.

The bank s capital adequacy ratio CAR would increase by just over 10 basis points by issuing tier II bonds. In September 2022, the CAR of the bank was at 14.5 per cent, up from 13.64 per cent a year ago.

The bank had offered two instruments. The first was of Rs 1,500 crore base size of Rs 500 crore plus green shoe option of Rs 1,000 crore with 15 year maturity. It was oversubscribed by 8.63 times the base issue size. The coupon was 7.85 per cent for this bond, which has a call option completion of 10 years at the discretion of the Issuer. The second tranche was for Rs 700 crore with a base issue of Rs 200 crore and green shoe option of Rs 500 crore. It was oversubscribed 13.48 times of the base issue size. The coupon was 7.80 per cent for this bond, which has a call option on completion of the fifth year at the discretion of the Issuer with prior approval of the bank's loan book. The bank's loan book grew 21.92 per cent year-on-year YoY to 7.73 trillion.