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ICICI Bank to redeem bonds worth $340 million

ICICI Bank Wednesday said it will this month-end redeem bonds worth USD 340 million, issued by its Bahrain branch in 2006.


ICICI Bank to redeem bonds worth $340 million

New Delhi: ICICI Bank Wednesday said it will this month-end redeem bonds worth USD 340 million, issued by its Bahrain branch in 2006.

The bank, on August 24, 2006, had issued 7.25 percent perpetual non-cumulative subordinated debt securities worth USD 340 million with an optional redemption on October 31, 2016, or on any subsequent interest payment date.

"The Bank has decided to redeem the Notes on the first call date of October 31, 2016, and has obtained the requisite regulatory approvals for exercising the call option, including approvals to make payment from ICICI Bank Ltd, acting through its head office in India," the bank said in a BSE filing.

In a redemption notice to bond holders, it said the amount accrued and unpaid interest with respect to the Notes to the redemption date will be USD 36.25 on each USD 1,000 of Notes.

"The redemption price for all outstanding Notes on the redemption date will be USD 1,036.25, for each USD 1,000 of Notes," ICICI Bank said.

S&P Global Ratings has affirmed 'BB' rating on these bonds and removed it from 'CreditWatch', where it was placed with negative implications on February 22, 2016.

"The sovereign risk of the host country for ICICI Bank's bondholders has reduced following ICICI Bank's announcement that it will redeem these bonds in full on the first call date on October 31, 2016," S&P said. 

From Zee News

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