India’s largest private sector lender ICICI Bank has hit the Chinese debt market for a benchmark issue of about USD 500 million.

According investment banking sources, ICICI’s three-year tenor benchmark issue is to be issued to the offshore Chinese investors and will be denominated in the renminbi or yuan.

An initial pricing guidance of 4.125 per cent has been offered by the bank.

This is the third issue by ICICI Bank and makes it the second domestic lender to sell bonds to offshore Chinese investors after IDBI Bank’s issue earlier on.

Meanwhile, rating agency S&P has given a BBB— rating to the senior unsecured renminbi notes.

In a statement from Singapore, Standard & Poor’s rating reflects the long-term counter-party credit rating on the bank.

“The proposed notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of ICICI Bank. They shall at all times rank at par among themselves and with all other unsecured obligations of the bank. The proposed notes will be listed on the Singapore exchange,” S&P said.

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