BoI raises $250-million foreign currency bonds
By Our Banking Bureau | 30 Sep 2005
Bank
of India has raised $250 million through a multi-currency
medium term note (MTN) bond issue. The issue attracted
orders of over $900 million and was priced at 85 basis
points above the London Inter-Bank Offered Rate (LIBOR).
BOI is the third Indian Bank other than ICICI Bank and SBI to raise money through an Overseas Bond issue.
According to M Balachandran, chairman and managing director, "The issue saw the second best pricing on a bond issuance ever from India. The book size of the issue was over three times and has 113 accounts. Applicants from Asia constituted 52 per cent, Europe 42 per cent and the Middle East and others constituted 6 per cent. Also, 56 per cent of the applicant were banks, 32 per cent asset managers and 12 per cent retails investors. The money would be used for financing Indian companies'' mergers and acquisitions and for their long-term needs overseas."
BOI has 23 foreign offices in major international financial centres in 12 countries and has a well diversified portfolio of business. It has received RBI''s approval for opening three branches at Antwerp (Belgium), Shenzhen (China) and Ho Chi Minh City (Vietnam), and a wholly owned subsidiary at Dar-Es-Salaam (Tanzania). Beside this, Bank will be opening a Representative Office in Beijing (China) and also enter the Middle East market by opening a Representative Office in Doha (Qatar). It also has ambitious plans for future overseas expansion of branches and business.
