Bank of India raises $500-million via short-term bonds
27 Mar 2010
Bank of India has raised $500-million through a bond issue in the international market, the bank said today. The bonds have been swapped into a floating rate of 175 basis points above Libor, the bank said.
The bonds, issued under its Medium Term Notes (MTN) programme, has an interest rate of 4.75 per cent.
An MTN programme allows an issuer to raise funds on an ongoing basis through various products such as floating rate notes or on a fixed rate after obtaining prior regulatory and other approvals.
Bank of India has so far raised $1-billion, including from the current issue, under its $2-billion MTN programme launched in 2005.
The issue had a book size of $4-billion with orders from more than 300 quality investors, the bank said.
Major banks such as the State Bank of India and ICICI Bank as also private sector lender Axis Bank have raised short-term bonds under Medium Term Note programme.
SBI has so far raised $2.9-billion under its MTN programme and ICICI Bank raised $750-million last year while Axis Bank yesterday completed a $350 million note issue.
IDBI Bank is also understood to have plans to raise $1.5 billion under an MTN programme.
