Bank of India has raised $750 million by issuing Reg-S international dual tranche bonds to support overseas operations. The issue includes bonds worth $500 million and $250 million maturing in 2021 and 2015, respectively. This is part of its overall $2-billion medium-term note (MTN) programme launched in 2005. Of this, it has already raised $1 billion.
The money will be used to fund the bank’s international business. “The issuance will enable us to provide liquidity for our existing bonds and also fund long-term assets,” said chairman and managing director Alok Misra. The bank has 29 branches and five representative offices abroad.
With funds getting expensive in India, public sector banks have increasingly started tapping opportunities abroad. State Bank of India, the country’s largest lender, had raised $750 million via MTN in November while Bank of Baroda, Indian Overseas Bank, IDBI Bank and Syndicate Bank are expected to do so by the end of the financial year.
Barclays Capital, Deustche Bank, HSBC, Royal Bank of Scotland and Standard Chartered acted as joint book-runners and lead managers for the issue.
