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Axis Bank to raise $300 mn through bond sales

Axis Bank to raise $300 mn through bond sales
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First Published: Fri, Jun 12 2009. 05 52 PM IST
Updated: Fri, Jun 12 2009. 05 52 PM IST
Mumbai:Axis Bank is in talks with overseas investors about raising up to $300 million through the sale of bonds with maturities of two to three years, the bank’s treasury head said on Friday.
Bapi Munshi, president of the treasury, said, the bank was looking to raise funds at under 200 basis points over the London Interbank Offered Rate,but investors were expecting a spread of around 325 basis points.
“It (sentiment) is much better compared to say two months back. People are willing to take the risk, but definitely pricing is an issue.” Munshi said.
“Our expectation is that spreads would come down further, and maybe September will be the opportunity when we may some improved spreads for us,” he added.
Axis Bank opened a Rs20 billion ($420 million) lower Tier-II bond issue this week and the sale closes on 17 June .
The bank has a board approval to raise a total of Rs 30 billion via Tier-II subordinated debt from the domestic and overseas markets, Munshi said.
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First Published: Fri, Jun 12 2009. 05 52 PM IST