Mumbai: Public sector lender Bank of India on Thursday said it has raised bonds worth $750 million in two tranches from international markets.
The first tranche of the bond, amounting $250million matures in five years, while the second tranche is of a total of $500 million and matures in 10 years.
“ Bank of India is also the first ever Indian public sector bank to tap the 10-year segment of the curve,” the lender said in a statement. The issue was oversubscribed almost four times, the statement said, adding that the bonds were priced at 235 basis points over 5 year US Treasury and 260 basis points over 10 year US Treasury, respectively. One basis point is 0.01%.
Barclays Capital, Deustche Bank, HSBC, The Royal Bank of Scotland plc, and Standard
Chartered Bank acted as joint bookrunners and lead managers.
Meanwhile, PTI reported that State Bank of India has raised 325 million Swiss francs (around Rs 1,500 crore) via an international bond issue to meet its increasing forex needs.
The issue is in the form of senior debt fixed rate bonds with a maturity of five years and comes under the medium term notes (MTN) programme, a senior official in the bank’s international business group told PTI on Thursday. The current issue carries a coupon rate of 3.37%, the official, who wished to be unidentified, added.
This is the third bond issue by the state run bank this fiscal under its MTN programme, with the previous two being the $1 billion issue in July 2010 and €750 million issue last November.
PTI also contributed to the story