Another TEMASEK adventure overseas, paying 'S$43.7 million for an increase of only 0.56% - (from 6.72 per cent to 7.28 per cent) - in its stake in India's second-largest lender ICICI Bank - Temasek raises stake in ICICI Bank By Edna Koh JUST a few days after Temasek Holdings declared a new thrust that will see it put more money outside Singapore and into promising Asian companies, the Republic's investment company is storming ahead with its new strategy.
Temasek disclosed yesterday that it had paid 1.15 billion rupees (S$43.7 million) last week to increase its stake in India's second-largest lender ICICI Bank, from 6.72 per cent to 7.28 per cent. Debt markets news service Basis Point also reported that Temasek is planning a bond issue of as much as US$3 billion (S$5 billion) as early as the second quarter - perhaps to fund its overseas acquisitions.
Temasek is expected to send requests for proposals to investment banks towards the end of the month. DBS Bank, Deutsche Bank, Merrill Lynch, Morgan Stanley and UBS Warburg are among those expected to be invited to pitch for the deal, said Basis Point.
When contacted, Temasek spokesman Eva Ho said that while the investment company was considering a bond issue, no decisions had been made.
'It is therefore too early for us to talk about the details, and the information in the Basis Point report is pure market speculation.'
She also confirmed that Temasek had not yet appointed a credit rating agency for a credit rating.
Still, a credit rating can be obtained fairly quickly - with Standard & Poor's (S&P) able to come out with one within a month of meeting the company's management and getting information about its business and plans.
'It could be faster if information is forthcoming,' said S&P director of corporate and infrastructure ratings Gregory Pau.
A credit rating will most likely precede a global bond issue because that will make the debt easier to sell in developed markets like the United States and Europe, say industry watchers.
Though Temasek has said it is not in need of funding, bankers say it could be keen to tap the market soon because interest rates can only go up from here.
While the US Federal Reserve may not raise rates in a presidential election year, 'we are clearly at the bottom of the interest rate cycle. It makes sense to go to the market earlier than later', said one banker.
Straits Times 17 Feb 2004 - carried in Myanmarhttp://straitstimes.asia1.com.sg/money/story/0,4386,235646,00.html?ICICI Websitehttp://www.icici.com/#ICICI Audited Financial Results for Half-Year ending Sep 2003http://www.icici.com/pfsuser/aboutus/resultsann/audfinan_halfyr.pdfFollowing was a Press Release from the Reserve Bank of India - to calm public fears in India concerning the financial health of ICICI:ICICI Bank has no liquidity woes: RBIApril 12, 2003 13:22 IST
The Reserve Bank of India said on Saturday the financial health of ICICI Bank was sound, in a bid to calm depositors following rumours that the country's second largest commercial bank was hit by liquidity problems due to stock market losses.
Media reports in Gujarat on Friday said ICICI Bank had lost money in a recent stock market fall and was facing liquidity problems, triggering a rush among its depositors that continued into its second day on Saturday.
"It is clarified that the ICICI Bank has sufficient liquidity including in its current account with the RBI, to meet the requirements of its depositors," a statement from the central bank said.
"RBI has arranged to provide adequate cash to ICICI Bank to meet the demands of its customers at the branches and automated teller machines. The bank's financial position is also sound."
The benchmark 30-issue Bombay Stock Exchange nearly 4.6 per cent in the past two days after bellwether Infosys Technologies kicked off India's earnings season on Thursday with a dismal outlook.
"These are baseless rumours and there is no truth in this," Kalpana Morparia, executive director at the New York Stock Exchange-listed bank, said.
She estimated that around Rs 60 million might have been withdrawn from the bank's ATMs in Gujarat on Friday.
Shares of ICICI Bank, with assets of almost Rs 1 trillion and behind only to the state-run State Bank of India, ended 2.13 per cent lower on Friday at Rs 130.80.
http://www.rediff.com/money/2003/apr/12icici1.htm