BoB hits overseas debt market; to raise at least $500m

Tags: News
State-run Bank of Baroda today became the second domestic issuer to approach the overseas bond market in the New Year with a 5.5-year $ 500 million (around 3,100 crore) issue.

"We have just announced a benchmark ($ 500 million or above) US dollar unsecured senior bond issue (REG S) for a 5.5-year money. The final guidance for the issue, maturing in 2019 has been set at 330 bps over the US treasury," one of the merchant bankers, who wished not to be named citing confidentiality issues, told PTI.

This Monday, the largest telecom Bharti Airtel raised 250 million euros at a coupon of 385 bsp above the EUR MS rate by reopening its 750 million euro issue which it had raised in December at 4.05 per cent.

Bank of Baroda, which is the second largest PSU lender in the country, could not be contacted for comment.

While Bharti issue was aimed at preparing a war-chest for the forthcoming spectrum auction, for which it today submitted an application to participate in the auctions, the BoB issue could be used for onlending purposes for its overseas clients.

In the just-concluded year, domestic corporates and financial institutions had raised a record $ 16 billion international debt, up 60 per cent from 2012.

The overseas fund raising had ebbed following the May 24 tapering talk by the US Fed, which spiked interest rates in Western markets. Since then there were only a few issues including HDFC Bank's $ 500 million in October and ICICI Bank's $ 750 million in November last.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • By standing up for its priorities at WTO, India has saved its farmers

    Narendra Modi has demonstrated his global priorities during his short stint in power by engaging Pakistan and China on the need to mend fences with In

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Dealing with a sin called insensitivity

Rage and the notion of being above the law — ...

Purnendu Ghosh

Avoiding utopian or dystopian extremes

One must know the known in order to know the ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture