The bonds offered 6.45% with a seven-year maturity. ICRA has rated these articles with a rating of AAA (Stable).
At least two pension funds LIC New Pension Scheme (NPS) and UTI NPS, fund companies like Aditya Birla MF, Tata MF and insurer Bajaj Alliance have likely subscribed to these documents through the tendering process. The bank obtained and withheld about a dozen and a half offers.
The proceeds will be used to lend to the infrastructure sector as well as low cost affordable housing. ICICI Bank last raised infrastructure bonds for Rs 4,000 crore in 2016-17.
Some banks are said to have picked up these top-rated debt securities through a bidding process only to sell their holdings to different mutual funds, including SBI, HDFC and Tata Life Insurance.
Individual investors could not be reached immediately for comment. ICICI Bank did not respond to ET’s request for comment until press time.
“Infrastructure bonds entered the market after a long spread, suggesting the borrower has pockets of deployments,” said Ajay Manglunia, Managing Director – Debt Capital Markets,. “The demand for infrastructure credit arises gradually with the unfolding of the release program.
The base size of the problem was set at Rs 1,000 crore with an option to keep the subscription up to Rs 4,000 crore. Pension funds are likely to have owned larger sums than mutual funds of up to Rs 600 crore for a single offer.
“The bank’s current capital is sufficient to support its medium-term growth needs and absorb expected shocks to asset quality,” ICRA said in a note.
ICICI Bank announced a 104% increase in its stand-alone net profit for the year ended March 31, 2021, to Rs 16,192.68 crore.
During the January-March quarter, the lender reported another phenomenal 260.47% year-over-year increase in net profits.
“We remain positive on ICICIBANK, given a solid balance sheet, strong growth
in advances, a high CASA (current account to savings account) ratio and improved asset quality, ”brokerage firm AnandRathi said in a report.
Total loans increased 14% year-on-year to Rs 733,729 crore as of March 31, 2021, from Rs 6,45,290 crore a year ago.