ICICI Ltd is raising $1.5 billion via a yen-denominated loan-the country's biggest offshore loan for a financial borrower, sources familiar with the deal said.
The loan has three equal-sized maturity buckets to fund general corporate purposes. The five-year portion is the longest maturing loan to be issued by ICICI. ICICI, already Asia's biggest issuer outside of Japan in the offshore bond market this year, is trying to feed fast-growing India's frenzied loan market as deposit growth struggles to keep pace.
Lending by Indian banks is growing at an annual pace of 29 per cent, but deposit growth is a more modest 20 per cent. The issue is being arranged by Bayern LB, BNP Paribas, Calyon, Commerzbank, Goldman Sachs, HSBC, Intesa Sanpaolo, Natixis, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.
The 364-day tranche will pay 15 basis points (bps) over the one-year London Interbank Offered Rate (LIBOR); the three-year tranche will pay 38 bps over LIBOR; and, the five-year tranche will pay 55 bps over LIBOR.
The bank plans to complete the syndication of the loan by the first week of September. ICICI's offshore senior debt is rated BBB-minus by Standard & Poor's Ratings Services.
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