The Mumbai-based multinational bank and financial services company ICICI Bank saw its shares decline on Thursday. The stock price fell to ₹1,256.20, down 2.57% from the previous trading day's ₹1,289.30.
As of ICICI Bank's current price of ₹1,268.20, despite the decline, it has still maintained a 1.13% increase over the past five trading days.
Full Redemption of $800 Million Unsecured Notes
The drop in ICICI Bank's stock price is attributed to its regulatory disclosure regarding debt redemption. In a filing submitted to the exchange, the bank stated that as of March 18, it has fully redeemed $800 million of unsecured notes issued under its Global Medium Term Note (GMTN) program.
The bank indicated that the total amount paid was $816 million, which includes $800 million in principal and $16 million in interest, along with accrued interest from the last coupon date to the maturity date.
Medium Term Notes
Medium term notes are debt instruments used by issuers such as corporations and financial institutions to raise funds over the medium term, typically with maturities ranging from one to ten years, often structured through a program that allows for repeated issuance. This method provides issuers with a flexible means to raise funds in tranches over a specified period.
“Once a program is established, issuing new medium term notes is usually quicker and less repetitive than launching standalone bond issues. It also allows issuers to borrow when interest rates or demand appear more favorable.”