ICICI Bank’s board approved the revised limit, allowing it to raise funds through offshore certificates of deposit, notes and bonds.
The move follows HDFC Bank’s $1.75 billion GIFT City bond issue and recent overseas fundraises by IDFC First Bank and Kotak Mahindra Bank.
ICICI Bank has not specified the pricing, maturity, tranche sizes or timeline for the proposed borrowings.
ICICI Bank’s $5 Billion Overseas Borrowing Plan: Why It Matters
ICICI Bank has raised its overseas borrowing limit to $5 billion, giving the lender additional access to international debt markets as Indian banks increasingly turn to offshore funding to strengthen their capital base
ICICI Bank
Summary
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ICICI Bank's board approved a revised overseas borrowing limit of up to $5bn on Friday. Following the announcement, the private-sector lender's shares advanced 0.4 per cent to Rs 1,417.50 during late-morning trade. This upward movement pushed the stock's year-to-date gains to 5.9 per cent.
In contrast, the benchmark Nifty 50 index has declined by 7.2 per cent during the same timeframe.
The bank currently holds a market capitalisation of approximately Rs 10.17 lakh crore, translating to roughly $105bn.
Details of Borrowing Plan
The regulatory approval permits the lender to secure capital through multiple offshore debt instruments. These funding options include offshore certificates of deposit, notes and bonds.
However, the institution did not outline specific operational parameters in its exchange filing.
Details regarding the exact pricing, maturity dates, individual tranche sizes and overall timeline for the proposed issuances remain undisclosed.
Broader Banking Sector Trend
This strategic move aligns with a growing pattern of Indian financial institutions accessing international debt markets.
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On August 20 HDFC Bank stated it had raised $1.75bn via senior unsecured bonds from its GIFT City branch. This marked its most substantial overseas fundraise since the global financial crisis in 2008.
The HDFC transaction featured two distinct tranches, both scheduled to settle on August 26.
It included a $500mn three-year note maturing in August 2029 with a 5.159 per cent coupon at an 88 basis point spread over US Treasuries.
A separate $1.25bn five-year tranche, maturing in August 2031, carried a 5.401 per cent coupon at a 100 basis point spread.
Other prominent lenders have recently executed similar international capital raises.
IDFC First Bank gathered $600mn through offshore bonds, while Kotak Mahindra Bank collected around $650mn through its debut issuance of five-year bonds.
This ongoing surge in international borrowing is actively supported by domestic regulatory mechanisms.
The Reserve Bank of India currently operates a concessional swap window for external commercial borrowings, which remains accessible until the end of 2026.
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