ICICI Bank seeks to raise $1.45 billion loan from a BofA-led consortium
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The loan is likely to be priced at 110-115 basis points over the secured overnight financing rate (SOFR), with more banks expected to join the syndication, according to people familiar with the matter. ICICI Bank has the option to increase the loan size if demand is strong. "BofA is the lead book runner in the transaction and has already committed about $1 billion, which will reduce depending on the demand from other banks to join the transaction," said one of the people cited above. "The loan was launched into syndication earlier this week, and more banks will likely join the process and make commitments in the next couple of weeks." Large Indian banks have been tapping the dollar loan market to raise funds. These loans are aimed at attracting potential leveraged investors to the Foreign Currency Non-Resident (Bank), or (FCNR-B), deposit programme allowed by the Reserve Bank of India (RBI). ICICI Bank's loan is also part of a broader push by Indian banks to raise foreign-currency funding and take advantage of the RBI's special window. The funds raised will be used to provide leverage to overseas clients making FCNR (B) deposits with them. The RBI is absorbing the entire currency hedging cost for banks on fresh three- to five-year deposits, allowing them to raise funds without having to bear hedging costs. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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