IDBI Bank to raise 5 year funds through dollar bonds

MUMBAI: IDBI Bank Ltd has raised $500 million from a five years bond programme at a coupon of 3.75%. Standard & Poor's Ratings Services has assigned BBB- rating to the proposed issues. Standard Chartered Bank and HongKong Shanghai Bank Corporation were lead managers to the issue.

Despite the uncertainty in the global market on account of the Cyprus issue, the IDBI Bank bond issue received very good investor response with the book being oversubscribed nearly five times,'' said Jujhar Singh, managing director and head of Debt Capital Markets South Asia, Standard Chartered Bank.

The political developments in India that lead to a very weak open in the Indian equity market today did not deter international fixed income investor sentiment as we saw the orderbook grow consistently through that period. The new bond which matures in January 2019 has been priced tighter (on a z-spread basis) than the secondary trading level on IDBI's existing USD bond which was issued in September 2012, and thus setting a new record for coupon and spread paid by IDBI for a USD bond issuance of similar tenor'' said Singh.

Domestic companies are accessing the overseas markets for funding as raising Rupee resources is very expensive.

The current issue is part of the bank's $3.5 billion medium-term notes programme.

So far in 2013, over half a dozen companies, including RIL, PowerGrid, Tata Com, ICICI Bank, HDFC Bank, Exim Bank, Bank of India and Bharti Airtel among others, raised USD 4.25 billion from overseas debt market.

So far in 2013, over half a dozen companies, including RIL, PowerGrid, Tata Com, ICICI Bank, HDFC Bank, Exim Bank, Bank of India and Bharti Airtel among others, raised USD 4.25 billion from overseas debt market.