Home » IDBI Bank issues long-term bonds worth $500 mn

IDBI Bank issues long-term bonds worth $500 mn

IDBI Bank issues long-term bonds worth $500 mn

Reports suggest that response for the latest long-term bond issue by the state-run IDBI Bank was robust with subscription five times the issue size.

HSBC and Standard Chartered Bank were arrangers for the offering. Initially the indicative yield for bonds with tenure of five years and 10 months, was US treasury plus 315 basis points. Finally, it was fixed at T plus 300 basis points.

The bank managed to raise $500 million through long term bonds from the international market even as uncertainty prevails over risks of bankruptcy in Cyprus, a European Union member.

It is learnt that foreign investors have faith in the Indian long term growth story. IDBI Bank is a regular to raise funds from the market. Both are reflected in level of response to offering. About 190 investors placed their bids, sources informed.

Recently, another public sector lender Bank of India had raised $500 million at Treasury plus 280 basis points. It also received response five times the issue size.

The IDBIÂ’s long-term notes will mature in January 2019. They will be listed on Singapore exchange and issued by Dubai of IDBI Bank.

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