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Indian Overseas Bank has raised $500 million (about Rs 2,250 crore) medium term notes and listed it on the Singapore stock exchange. The medium term notes were subscribed by nearly four times.
Mr M. Narendra, Chairman and Managing Director, Indian Overseas Bank, told Business Line the funds raised would help in credit expansion of overseas branches. The bank has six overseas branches — in Singapore, Hong Kong (two), Bangkok, Seoul and Colombo.
The medium term notes with a coupon rate of five per cent for a period of five-and-a-half years was largely subscribed by investors from the Asian markets and about 26 per cent subscribed by European investors. It will pay an interest rate of 290 basis points over the US treasury.
Recently the bank had issued equity shares on a preferential basis to the Government. It allotted 7.3 crore equity shares of Rs 10 each at a premium of Rs 132.53 per equity share. This, at an issue price of Rs 142.53 an equity share, amounted to Rs 1,054 crore to Government of India on preferential basis. With this move, the Government's shareholding in IOB has increased from 61 per cent to 65.8 per cent.
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