ICICI Bank Share Dips 2.6% Following $800M Debt Redemption

The share price of the Mumbai-headquartered multinational bank and financial services company ICICI Bank is down on Thursday. The stock fell to ₹1,256.20, down by 2.57% from the previous closing price of ₹1,289.30.

Based on the bank’s current price of ₹1,268.20, the stock is still trading in the green territory with gains of 1.13% over the past five trading days.

Full Redemption of $800 Million Outstanding Notes

ICICI Bank’s share fell following a regulatory disclosure of debt redemption.

In a filing submitted to exchanges, the bank said that as of Wednesday, March 18, it has fully redeemed outstanding notes worth $800 million that were issued under its Global Medium Term Note (GMTN) program. 

The bank said that it paid a total amount of $816 million, which covers the $800 million principal and $16 million in accrued interest from the last coupon date to maturity. 

“Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please note that ICICI Bank Limited has fully redeemed the outstanding notes under ISINs: US45112FAJ57/ US45112EAG44 for a total sum of USD 816,000,000.00,” the bank stated in a regulatory filing.

Medium Term Notes

Medium term notes are debt instruments that issuers like corporations and financial institutions use to borrow funds over a medium time horizon with maturity ranging between one to 10 years, usually through a program structure that allows repeated issuances. This gives issuers a flexible means of raising funds in tranches over time.

“For issuers, medium term notes make fund-raising smoother,” the Securities and Exchange Board of India (SEBI)- registered stockbroker and licensed Online Bond Platform Provider (OBPP) IndiaBonds explained.

“After a program is set up, issuing new medium term notes can be faster and less repetitive than launching standalone bond issues. It also allows issuers to time their borrowings—raising money when rates or demand look more favourable.”