ICICI Bank8217;s Global should catch the IOB tailwind

The execution discipline on the new ICICI looks likely to follow the script set by IOB,which launched at an initial Treasuries plus 430bp guidance and was iterated aggressively by 25bp to final pricing.

With the new IOB last bid at 399bp,it looks likely that a sub plus 400bp print is the targeted outcome on the new ICICI. With the private bank bid out in force on IOB-PBs booked 35of the deal,with many accounts offered leverage to book the paper 8211; ICICI will have no shortage of takers from that space.

And most buy-side accounts prefer the privately owned Indian banks over the state-owned sector,with financials superior in the former,based on lower NPLs and higher net interest margins.

ICICI has the fullest curve in the Indian bank sector and if it goes for a USD1bn trade as is the expected outcome,a new liquid benchmark for the private Indian banks will be established,something which should provide a powerful tailwind for the new deal.