SBI’s successful dollar debt sale prompts Bank of Baroda to test waters, bankers say
MUMBAI: India’s Bank of Baroda is considering dollar funding, a day after its peer State Bank of India, the country’s largest lender by assets, received strong demand for its foreign-currency bonds, two merchant bankers said on Thursday. BOB, India’s second largest state-run lender by assets, plans to raise funds through a dual-tranche bond issue maturing in three years and five years, and has…
Mumbai - Bank of Baroda is reportedly contemplating dollar funding following State Bank of India's (SBI) successful sale of foreign-currency bonds, according to two merchant bankers. The second-largest state-run lender plans to raise funds through a dual-tranche bond issue maturing in three and five years, with initial guidance provided.
The bank has offered a spread of 120 basis points over U.S. Treasury for the three-year option and 130 basis points for the five-year sale. However, if bidding is aggressive, the bank could increase the size of one maturity. BOB's goal is to raise around $500 million through each maturity, though this is subject to change based on demand.
Other Indian banks, such as HDFC Bank, Axis Bank, and ICICI Bank, have also raised funds through dollar bonds in recent months. The proceeds from BOB's bond issue will be used to fund the bank's head office, foreign branches, and general corporate purposes. The bonds are rated BBB, BBB-, and BBB+ by S&P, Fitch Ratings, and CareEdge Ratings, respectively.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
