Indian banks queue up to tap dollar bond market

ICICI Bank and Union Bank of India launch dollar bonds amid keen demand from investors for quality paper.
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ICICI Bank: Investors placed orders for $5.7 billion of bonds from the Indian bank
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<div style="text-align: left;"> ICICI Bank: Investors placed orders for $5.7 billion of bonds from the Indian bank </div>

Indian banks are taking full advantage of the strong demand for quality paper, with ICICI Bank closing a $750 million five-and-a-half year bond early Wednesday morning, after attracting $5.7 billion worth of orders.

The deal priced at Treasuries plus 400bp, at the tight end of the final guidance of Treasuries plus 400bp to 405bp. This was some 25bp inside the initial guidance, which was in the area of Treasuries plus 425bp.

The new ICICI bonds, which mature in February 2018, came at a negative new issue premium. The ICICI Bank 2016s were at Treasuries plus 390bp, which put fair value for a new ICICI Bank bond maturing...

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