ICICI Bank initiates modifications to $600 mn Bahrain bonds

NEW DELHI: Private sector ICICI Bank today said it is in the process of carrying out modifications to the structure of all the issuances amounting to about USD 600 million done from Bahrain following lowering of the sovereign rating of the Gulf nation.
"The bank is working on measures to address the impact of the rating action on the Kingdom of Bahrain, on the bonds issued by the bank from its Bahrain branch," ICICI Bank said in a regulatory filing to stock exchanges.

Following the rating action on Bahrain, the bonds issued by ICICI Bank from Bahrain branch may be subject to rating action by S&P, it said.

On February 17, S&P lowered its long and short term foreign and local currency sovereign credit ratings on Bahrain to BB/B (stable) from BBB-/A3 (negative).

ICICI Bank has outstanding bonds aggregating approximately $600 million issued from its Bahrain branch.

According to the rating criteria of S&P, the rating on the bonds issued by a bank branch will be capped by the host sovereign foreign currency rating, it said.