ICICI Bank eyes raising $700 mln in bonds-sources

By Narayanan Somasundaram and Suvashree Dey Choudhury

MUMBAI, Nov 16 (Reuters) - ICICI Bank (ICBK.BO) (IBN.N), India's second-biggest bank, is hoping to raise about $700 million in bonds through its medium-term note programme, three sources familiar with the deal said on Monday.

"About $700 million with a greenshoe is the right way to look at it. We are gauging investor demand," one of the sources with direct knowledge of the matter told Reuters.

The pricing of the bond issue is yet to be decided, the three sources said, According to market participants, the issue may be priced at a mark-up of around 300 basis points above Libor (London Interbank Offered Rate).

The sources said Credit Suisse (CSGN.VX), HSBC (HSBA.L) (0005.HK) and Bank of America-Merrill Lynch (BAC.N) were arranging the deal. Last week a source had said a series of meeting with fixed-income investors would be held from Monday. [ID:nHKG78870]

On Monday, the sources said ICICI was expected to outline its business strategy at the meetings, which it would use to test market interest in the bond issue. (Editing by John Mair)