ICICI Bank is one of India’s largest private-sector banks, and its bonds are widely followed because they combine a strong banking franchise with a layered capital structure. But “ICICI bond” is not one product: the risk, maturity, liquidity, and loss-absorption features differ materially across instruments. Understanding those differences matters more than chasing the highest headline yield.
ICICI bonds mean two very different things depending on when you encountered the name. If you hold an old ICICI Safety Bond, your question is usually about redemption, unclaimed money, or a lost certificate; if you are evaluating ICICI Bank debt today, the relevant choices are senior infrastructure bonds, Tier 2 bonds, AT1 bonds, and ICICI Home Finance NCDs. This guide covers both: legacy holders can go straight to ICICI Safety Bonds: What Happened and How to Claim, while investors comparing current paper can start at The Modern ICICI Debt Spectrum.
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ICICI Bond Types at a Glance
| Instrument | Issuer | Indicative yield/coupon | Rating | Priority or catch |
| Senior infrastructure bonds | ICICI Bank | 7.53% coupon on the July 2034 issue; current dated yield varies | AAA (ICRA/CARE) | Senior unsecured, minimum seven-year maturity under RBI norms |
| Tier 2 bonds | ICICI Bank | Varies by ISIN and maturity | AAA (CARE; ICRA on Basel III programs) | Subordinated and subject to PONV write-down/conversion |
| AT1 bonds | ICICI Bank | Varies; typically higher than senior paper | AA+ (ICRA/CARE) | Perpetual, cancellable coupons and PONV write-down risk |
| NCDs | ICICI Home Finance | Example: 7.85% coupon, about 7.72% secondary yield | AAA (ICRA/CARE/CRISIL) | Separate NBFC issuer; housing-finance credit with parent linkage |
ICICI Safety Bonds: What Happened and How to Claim
The old ICICI Safety Bonds were issued by former ICICI Ltd. before its merger with ICICI Bank in 2002. ICICI Bank’s investor pages continue to list long-term bonds issued by the former ICICI Ltd, which is why many families still hold these certificates or demat holdings today.
ICICI Bank currently states that no new bond issuances are active, while existing bondholders can continue to manage holdings with the bank and associated partners. If you hold an old bond, first check whether it is in demat or physical form. For demat holdings, ensure your registered bank account and contact details are updated, since redemption proceeds are typically credited to the registered account. For physical certificates, contact the registrar with the certificate and supporting identity documents.
For money unclaimed for seven years, the amount may be transferred to the Investor Education and Protection Fund (IEPF). Investors can then file a claim through Form IEPF-5 on the IEPF website; claims involving physical bonds generally require the original certificate. ICICI Bank lists 3i Infotech as the registrar for its bonds and debentures, though holders should confirm the registrar from their own certificate because older issues may differ.
The Modern ICICI Debt Spectrum
Today’s ICICI debt market is best understood as a spectrum: ICICI Bank issues senior, Tier 2, and AT1 bonds, while ICICI Home Finance issues NCDs backed by a housing-finance business and parent support. The 2002 merger of ICICI Ltd into ICICI Bank is also the source of much of the legacy bond paper still searched for today.
On 23 October 2026, ICRA reaffirmed its [ICRA] AAA (Stable) rating on ICICI Bank’s infrastructure bonds [1]. CARE Ratings reaffirmed its CARE AAA; Stable ratings on the bank’s infrastructure and Tier II bonds. Both agencies also reaffirmed their respective AA+ ratings, with stable outlooks, on Tier I bonds.
ICICI Senior Infrastructure Bonds
ICICI Bank’s senior infrastructure bonds are unsecured bank obligations, but they sit ahead of Tier 2 and AT1 capital in the repayment hierarchy and do not have the loss-absorption triggers attached to regulatory capital instruments. The RBI’s framework for banks raising resources through infrastructure bonds sets a minimum maturity of seven years, rather than a fixed 7–10-year window.
A useful example is ICICI Bank’s 7.53% infrastructure bond (ISIN: INE090A08UL3), allotted on 1 July 2024 and maturing on 3 July 2034. It has a face value of ₹1 lakh per bond, pays interest annually, and carries AAA/Stable ratings from ICRA, CARE Ratings, and CRISIL Ratings. For a buyer today, the relevant number is not only the coupon but the dated yield, which is the return if purchased at the current market price and held to maturity. Secondary-market yields can differ from the original coupon as interest rates and credit spreads move.
ICICI Tier 2 Bonds
Tier 2 bonds are subordinated debt: they rank behind senior creditors if a bank is wound up. They also carry a Point of Non-Viability (PONV) trigger, under which the bonds can be written down or converted if the regulator determines the bank would become non-viable without recapitalization.
That makes Tier 2 paper riskier than senior infrastructure bonds, even when both carry strong ratings. CARE rates ICICI Bank’s Tier II bonds AAA (Stable), while ICRA maintains AAA ratings on the bank’s Basel III bond programs; still, the rating reflects the bank’s overall credit strength, not a guarantee that subordination or PONV risk cannot matter in severe stress. Investors should read the specific ISIN’s term sheet for call dates, maturity and trigger terms rather than assuming they match another ICICI issue.
ICICI AT1 Bonds and the PONV Walkthrough
Additional Tier 1, or AT1, bonds are the most complex part of a bank’s capital stack. They are perpetual instruments, meaning they have no fixed maturity date, and their coupons can be cancelled at the bank’s discretion without constituting a default.
Key features to understand:
- Perpetual structure: AT1 bonds do not have a stated maturity date, so exit is usually through a sale in the secondary market rather than waiting for redemption.
- Discretionary coupons: The bank can skip or cancel coupon payments, subject to regulatory conditions, without triggering an event of default.
- PONV write-down: If the RBI determines that the bank is non-viable, AT1 bonds can be written down fully or partially, or converted into equity, before senior and Tier 2 creditors absorb losses.
- Rating and access: ICICI Bank’s Tier 1 bonds are rated AA+ by ICRA and CARE, lower than the AAA rating on its senior infrastructure bonds and CARE’s AAA on Tier II bonds.
- Restricted access: Following SEBI’s 2020 framework, non-institutional investors such as HNIs generally cannot subscribe to fresh AT1 issues; access is effectively limited to the secondary market, often in large lot sizes.
For investors whose priority is principal protection, the extra yield on perpetual AT1 paper is compensation for materially different risks, not a free upgrade over senior AAA bonds. Senior infrastructure bonds may offer lower potential yield, but they avoid the perpetual structure, coupon-cancellation risk and PONV write-down features that define AT1 instruments.
ICICI Home Finance NCDs
ICICI Home Finance Company Limited is a separate issuer from ICICI Bank, though its credit profile is supported by its relationship with the parent. Its NCDs are therefore best viewed as housing-finance credit with parent linkage, rather than direct ICICI Bank exposure.
ICRA has reaffirmed its [ICRA]AAA (Stable) rating on ICICI Home Finance NCDs, while CARE also rates the company’s debt at AAA. For example, a 7.85% secured NCD (ISIN: INE071G07603) maturing on 12 May 2028 has been quoted at an indicative yield of around 7.70% [2]. This is illustrative, not a guaranteed return: the yield available to an investor depends on the purchase price, residual maturity, the specific ISIN and prevailing market conditions.
You can also compare similar options and browse AAA-rated bank and NBFC NCDs on GoldenPi and check the coupon, tenure, and rating side by side before you invest.
How to Buy and Tax
Investors can buy listed ICICI Bank and ICICI Home Finance bonds through the secondary market via a broking platform or through primary NCD issues when available. ICICI Bank itself currently says no new bond issuances are active, so much of the practical access today is through listed secondary-market bonds.
Interest from bonds is generally taxed at the investor’s applicable income-tax slab. If a bond is sold before maturity, capital-gains treatment depends on the holding period and the applicable tax rules at the time of sale. Investors should also check whether the bond is listed, its settlement liquidity, face value, and accrued-interest treatment before placing an order.
Which ICICI Bond Fits Your Portfolio
A conservative investor seeking predictable maturity proceeds will usually look first at ICICI Bank’s senior AAA infrastructure bonds. An investor comfortable with subordination may consider Tier 2 paper, while AT1 bonds suit only those who understand perpetual instruments and regulatory loss-absorption risk. ICICI Home Finance NCDs offer a separate AAA-rated housing-finance exposure, but they are not the same as ICICI Bank bonds.
ICICI Bonds Frequently Asked Questions
ICICI Bank has issued infrastructure bonds, unsecured redeemable bonds, Basel III Tier II bonds, and Basel III AT1 bonds. Investors should check the exact instrument because maturity, repayment priority, and loss-absorption provisions vary.
Do not assume they are secured simply because they finance infrastructure-related funding requirements. Check the specific issue documents for security status, ranking, guarantees, and repayment terms.
Some outstanding ICICI Bank bonds can be bought through permitted secondary-market channels. Availability depends on the specific ISIN, listing and trading activity. Not every outstanding bond will have an active market.
Look up the exact ISIN and verify its latest available price, coupon schedule, maturity date and accrued interest. Use these details to assess YTM. The original issue coupon alone does not tell you the return available to a new buyer.
Tier II bonds may be suitable for some investors who understand their terms and risks. They are regulatory capital instruments and can be exposed to loss under specified circumstances. Their high rating should not be treated as equivalent to a guarantee.
Interest is generally taxable under the applicable income-tax rules. The precise treatment and any withholding obligations depend on the instrument, investor and relevant tax year.
Sources
- ICRA — ICICI Bank Limited Rating Details
- ICRA – ICICI Home Finance Company Limited Rating rationale, 8 May 2026 (PDF)
Disclaimer
Fixed returns do not constitute guaranteed or assured returns. Investments in corporate debt securities and municipal debt securities/securitized debt instruments are subject to credit risks, market risks, and default risks, including delay and/or default in payment. Read all the offer-related documents carefully. This blog/article should not be construed as financial advice or as an offer or recommendation to buy or sell any security or any products/services of/on GoldenPi or any product/services of its third-party client(s). For a detailed calculation of YTM, visit our website. T&C’s Apply.
