India’s ICICI Bank (NSE: ICICIBANK) has raised $750mn through a five-year US dollar bond at a spread tighter than its initial guidance, extending a recent surge in offshore fundraising by Indian lenders following the Reserve Bank of India’s concessional swap window for foreign-currency deposits, Reuters reported.

The bank priced the notes at 105 basis points over US Treasuries, compared with initial guidance of 130 basis points. The bonds carry a 5.4170% coupon and attracted more than $2bn in bids, according to two merchant bankers familiar with the transaction.

The latest issue marks ICICI Bank’s third dollar fundraising in the past month and brings its total offshore dollar debt raised during the period to $2.05bn, making it the largest such fundraiser among Indian banks since the RBI announced the swap facility in early June.

The concessional swap window has allowed lenders to access foreign-currency deposits at lower costs while obtaining rupee liquidity, supporting lending and investment and potentially improving margins.

CreditSights had expected ICICI Bank’s final spread to be around 100-105 basis points, while estimating fair value at 90 basis points. The research firm had previously estimated fair value at 85 basis points but raised its assessment amid expectations of additional bank supply, particularly after the early closure of the RBI’s swap window aimed at attracting non-resident deposits.

The proceeds from the latest bond sale will be used for general corporate purposes. The notes have been assigned ratings of Baa3 by Moody’s and BBB by S&P Global Ratings, matching the bank’s existing ratings.

ICICI Bank, India’s second-largest private-sector lender by assets, is also in discussions with international banks for a $1.45bn loan, according to the merchant bankers.

The latest issue follows the bank’s $1bn five-year dollar bond sale in July, its first such issuance in nearly nine years. That deal was priced at 100 basis points over Treasuries, also below the initial 130-basis-point guidance, with a 5.46% coupon.

Earlier in August, ICICI Bank reissued the same securities at a 5.3520% yield, raising a further $300mn.