ICICI Bank, a private sector lender, has successfully allotted unsecured, subordinated, Tier-2 bonds to earn Rs 3,945 crore through a private placement, according to a regulatory filing released after market hours on Friday.

Key Highlights

• ICICI Bank raises ₹3,945 crore via 15-year Tier-2 bonds to boost capital.
• The bonds issue draws strong investor demand, offering a coupon of 7.40% and a 10-year call option.

The issue includes 3,945 Basel III-compliant debentures with a face value of Rs 1 crore. According to the bank's term sheet data, the bonds have an annual coupon rate of 7.40 percent and are payable annually.

The instruments have a 15-year tenor beginning with the deemed date of allotment, November 28, 2025, and ending on November 28, 2040. However, the structure includes a call option, which allows the bank to redeem the bonds sooner. According to the filing, the term is "subject to the exercise of any call option by the Bank at the end of 10 years and every year thereafter".

Regarding creditworthiness, the instruments have received top-tier ratings. It added: "The bonds are rated 'CARE AAA; Stable' by CARE Ratings Limited and '[ICRA] AAA (Stable)' by ICRA Limited"

In a separate development relating the bank's structural consolidation, ICICI Bank told the exchanges that it has got approval from the Reserve Bank of India (RBI) to convert ICICI Prudential Pension Funds Management Company Limited (ICICI PFM) into a fully owned subsidiary.

The bank has previously proposed acquiring a 100% stake in ICICI PFM from ICICI Prudential Life Insurance Company Limited. The RBI granted approval in a letter dated November 27, 2025, subject to several conditions, including "clearance from the Pension Fund Regulatory and Development Authority".

Also Read: IRFC Raises Rs 2,981 Crore via First Zero-Coupon Bonds

Following the bank's recent quarterly performance, brokerage firm Geojit Investments increased its stock rating from 'Hold' to 'Buy' on November 18. The firm has increased its target price to Rs 1,568, based on a sum-of-the-parts (SOTP) assessment.

On Friday, ICICI Bank shares closed 0.24 percent lower at Rs 1,388.70 on the BSE, compared to their previous closing of Rs 1,392.05 per.