BoI foreign currency bonds issue oversubcribed

Bank of India’s $500-million Foreign Currency Bonds issue, which hit the market on March 14, has been oversubscribed 5.4 times.

It is significant for being the first bond transaction by BoI offered to US institutions under Rule 144A and is also the first Indian PSU bank offering in 2013.

Priced at 280 bps above US Treasury, the bond has the lowest coupon for any Indian 144A offering. Subscription for the bonds was worldwide, with 46 per cent coming from Asia, 17 per cent from Europe and the balance 37 per cent from the US, the bank said in a filing to the BSE.

V.R. Iyer, CMD, BoI, said: “We are pleased to receive a warm welcome form US investors on our first 144A bond transaction.”

Bank of India has 52 foreign offices in 20 countries and over 25 per cent of its business comes from overseas. It was also the first Indian bank to go overseas when it opened an office in London in 1946.


Source: thehindubusinessline