According to some sources, India's second largest bank, ICICI is planning to raise around $700 million in bonds through its medium term note programme.

One of the sources said, "About $700 million with a greenshoe is the right way to look at it. We are gauging investor demand." A greenshoe option gives an underwriter the option to sell a greater number of securities than that originally specified by the issuer.

The sources said that pricing of the bond issue had still to be worked on but they felt that the issue might be priced 300 basis points (100 basis points=1 percentage point) above LIBOR (London Inter Bank Offer Rate).

The sources also revealed that Credit Suisse, HSBC and Bank of America were arranging the deal.

Last week a source had said that a series of meetings with the fixed income investors would be held soon.

In another development ICICI bank is planning to go aggressive in auto loans. The bank had been an aggressive lender for automobile buyers till three years ago but the global financial crisis combined with rising bad loans had restrained the bank from aggressive lending. The bank, however, has again started showing interest in auto loan segment an account of strong demand witnessed in the passenger car segment.