The country’s second largest lender ICICI Bank said that it has allotted Basel III compliant bonds worth Rs 475 crore on private placement basis. “The committee of the executive directors of the bank…today approved allotment of 4,750 Basel III compliant unsecured subordinated perpetual additional tier I bonds aggregating Rs4.75 billion on private placement basis,” the bank said in a regulatory filing.
The allotment was done today, it added. The bonds will carry a coupon rate of 8.55% per annum. ICICI Bank said the bonds will be listed on wholesale debt market segment of BSE and NSE. The bonds are rated AA+ by CARE and ICRA. Indian banking system has been implementing Basel III standards in phases since 1 April 2013.
The banks are expected to fully implement these norms by March 2019. These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks. Meanwhile, shares of the Bank were trading at Rs 273.65 apiece, down 0.85 per cent from the previous close at 11:24 hours on BSE.
