The country’s second largest private sector bank, ICICI Bank, has prepared to take a big step in the business world. This is going to be the first time since 2017 that the bank is going to issue US dollar bonds on such a large scale. According to media reports and sources, ICICI Bank is working on a big plan to raise huge funds of at least 500 million dollars i.e. 500 million dollars from the foreign market.
It is being told that the bank will collect this huge amount through the Global Medium-Term Note (GMTN) program within the coming few weeks. Let us tell you that this is considered to be a very special and popular platform for issuing foreign debt in the international market.
You will get huge benefit from this new and exciting facility of RBI.
Banking sources say that this big step being taken by ICICI Bank is actually the result of the recent relief received from the Reserve Bank of India (RBI). The central bank has launched a special concessional foreign exchange swap facility for eligible institutions taking foreign loans. The main objective of the Reserve Bank of bringing this special scheme is to encourage Indian banks to raise very cheap and easy funds from abroad.
The first big dollar bond deal is going to happen after the year 2017.
If this mega deal is completely successful, it will be ICICI Bank’s first largest US dollar bond sale since 2017. The interesting thing is that even at that time the bank had raised exactly 500 million dollars from the foreign market. Quoting sources, it is reported that to implement this historic deal, ICICI Bank is currently in continuous talks with many leading and renowned global investment banks of the world. However, when Bloomberg sent an email to the bank for an official comment on this entire matter, the bank management has not yet responded.
Many other big government and private banks of the country joined the race.
After the introduction of this new and flexible system of the Reserve Bank, not only ICICI Bank, but many other big banks of the country have also joined the race to collect big money from the foreign market. Recently, the country’s largest private bank HDFC Bank had also raised funds in the international market by issuing huge bonds worth $750 million i.e. $750 million. Apart from HDFC and ICICI, Axis Bank, the country’s largest government bank State Bank of India (SBI) and government company Power Finance Corporation (PFC) have also achieved the feat of raising huge capital from foreign markets.
Indian rupee also got strong support amid international turmoil
This far-sighted step of the Reserve Bank is not only benefiting the banks, but the Indian Rupee has also got a new strength and vitality at the international level. In fact, due to the war that broke out between America and Iran in the recent past, there was a huge rise in the prices of crude oil and energy in the international market, due to which the Indian Rupee had fallen significantly against the Dollar. The situation had become such that by the end of May the rupee had fallen to an all-time low of around Rs 97 per dollar. But after raising foreign funds by banks and promptness of RBI, till now there has been an excellent recovery and strengthening of rupee by about 2%.
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