ICICI Bank approves Rs 3,945 crore capital raise via Tier-2 bonds; key details
The issuance comprises 3,945 Basel III-compliant bonds in the nature of debentures, each holding a face value of Rs 1 crore.
- Nov 29, 2025,
- Updated Nov 29, 2025 10:11 AM IST
Private sector lender ICICI Bank has successfully allotted unsecured, subordinated, Tier-2 bonds to raise Rs 3,945 crore on a private placement basis, the bank disclosed in a regulatory filing on Friday, after market hours.
The issuance comprises 3,945 Basel III-compliant bonds in the nature of debentures, each holding a face value of Rs 1 crore. According to the term sheet details provided by the bank, the bonds carry a coupon rate of 7.40 per cent per annum, payable annually.
The instruments have a tenor of 15 years from the deemed date of allotment, which is November 28, 2025, setting the maturity date for November 28, 2040. However, the structure includes a call option, allowing the bank to redeem the bonds earlier. The filing noted that the tenure is "subject to exercise of any call option by the Bank at the end of 10 years and every year thereafter".
Regarding creditworthiness, the instruments have secured top-tier ratings. The bank stated, "The bonds are rated 'CARE AAA; Stable' by CARE Ratings Limited and '[ICRA] AAA (Stable)' by ICRA Limited".
In a separate development regarding the bank's structural consolidation, ICICI Bank informed the exchanges that it has received approval from the Reserve Bank of India (RBI) to make ICICI Prudential Pension Funds Management Company Limited (ICICI PFM) a wholly-owned subsidiary.
The bank had previously proposed acquiring 100 per cent shareholding in ICICI PFM from ICICI Prudential Life Insurance Company Limited. The RBI accorded its approval via a letter dated November 27, 2025, subject to specific conditions, including "clearance from Pension Fund Regulatory and Development Authority".
Following the bank’s recent quarterly performance, brokerage firm Geojit Investments on November 18 upgraded its rating on the stock from 'Hold' to 'Buy'. The firm has set a revised target price of Rs 1,568, based on a sum-of-the-parts (SOTP) valuation.
On Friday, shares of ICICI Bank closed 0.24 per cent lower at Rs 1,388.70 on BSE over its previous close of Rs 1,392.05 apiece.
Private sector lender ICICI Bank has successfully allotted unsecured, subordinated, Tier-2 bonds to raise Rs 3,945 crore on a private placement basis, the bank disclosed in a regulatory filing on Friday, after market hours.
The issuance comprises 3,945 Basel III-compliant bonds in the nature of debentures, each holding a face value of Rs 1 crore. According to the term sheet details provided by the bank, the bonds carry a coupon rate of 7.40 per cent per annum, payable annually.
The instruments have a tenor of 15 years from the deemed date of allotment, which is November 28, 2025, setting the maturity date for November 28, 2040. However, the structure includes a call option, allowing the bank to redeem the bonds earlier. The filing noted that the tenure is "subject to exercise of any call option by the Bank at the end of 10 years and every year thereafter".
Regarding creditworthiness, the instruments have secured top-tier ratings. The bank stated, "The bonds are rated 'CARE AAA; Stable' by CARE Ratings Limited and '[ICRA] AAA (Stable)' by ICRA Limited".
In a separate development regarding the bank's structural consolidation, ICICI Bank informed the exchanges that it has received approval from the Reserve Bank of India (RBI) to make ICICI Prudential Pension Funds Management Company Limited (ICICI PFM) a wholly-owned subsidiary.
The bank had previously proposed acquiring 100 per cent shareholding in ICICI PFM from ICICI Prudential Life Insurance Company Limited. The RBI accorded its approval via a letter dated November 27, 2025, subject to specific conditions, including "clearance from Pension Fund Regulatory and Development Authority".
Following the bank’s recent quarterly performance, brokerage firm Geojit Investments on November 18 upgraded its rating on the stock from 'Hold' to 'Buy'. The firm has set a revised target price of Rs 1,568, based on a sum-of-the-parts (SOTP) valuation.
On Friday, shares of ICICI Bank closed 0.24 per cent lower at Rs 1,388.70 on BSE over its previous close of Rs 1,392.05 apiece.