ICICI will soon issue JPY bonds

Part of its strategy to diversify funding sources.

ICICI Bank plans to raise US$504 million by issuing bonds in the Japanese market to institutional investors. This will be the first pro bond issue in the Japanese market by an Indian entity.

India's largest private sector lender is expected to issue the bond in tranches. The first tranche would be US$202 million and the following tranches would be decided based on investor appetite. The bond will carry a coupon of 3.5%-4% with a maturity of two years.

The issue forms a part of ICICI’s strategy to diversify its funding sources, increase investor base and cut borrowing cost. The funds raised will be utilized for its expansion plans.