Comments
State Bank of India and Bank of India have collectively raised about $1.1 billion from overseas markets by issuing bonds.
SBI has concluded an issue of Swiss Franc (CHF) 325 million (about $364 million) fixed rate bonds under the Medium Term Note (MTN) Programme. These bonds have a maturity of five years and carry a coupon rate of 3.375 per cent.
The bonds will be issued through the Bank's London branch as of February 22, and shall be listed on Six Swiss Exchange, SBI said, in a notice to the Bombay Stock Exchange.
Bank of India has completed issuance of international dual tranche bonds aggregating $750 million on February 9 . The offering was split between a tap of the existing bonds maturing in 2015 ($250 million) and a fresh 10-year tranche ($ million) maturing in 2021.
The tap on the existing bonds was priced at 235 basis points over 5-year US Treasury. The 10-year tranche was priced at 260 basis points over 10-year US Treasury.
“The issue was oversubscribed almost four times. The offering received orders from investors across categories such as fund managers, private banks, banks and insurance companies in Asia and Europe. The issuance will enable us in providing liquidity for our existing bonds and also to fund long term assets,” said Mr Alok Misra, Chairman and Managing Director, Bank of India, in a statement.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.