ICICI Bank has set initial guidance for its first dollar-denominated bond issuance in nearly nine years, targeting a spread of 130 basis points over the corresponding US Treasury yield.
The Indian lender is expected to raise at least $500 million through the transaction, which is being structured as a five-year benchmark deal.
The 130bp spread guidance reflects the bank's credit standing and the current pricing dynamics for Indian issuers in the global bond market.
This marks a significant return to international capital markets for the bank, which last issued dollar bonds in December 2017 when it raised $500 million through 10-year bonds at a coupon of 3.80%.
The move comes as ICICI Bank seeks to diversify its funding sources and capitalize on recent regulatory concessions from the Reserve Bank of India.
By returning to the offshore market, the bank is testing investor appetite for emerging-market financial debt in the current rate environment.
The 130bp spread guidance reflects the bank's credit standing and the current pricing dynamics for Indian issuers in the global bond market.