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Tuesday, November 18, 2014

Axis Bank raises $500 mn through overseas bonds

India’s third largest private lender, Axis Bank raised $500 million from the overseas debt market through unsecured bonds at a fixed coupon rate of 3.25 per cent for a 5.5 year tenure.

“The deal was launched at initial price thoughts at US Treasuries + 195 bps but the final pricing was 25 bps tighter than initial price thoughts at T + 170 bps… The unsecured notes are issued by Axis Bank’s DIFC branch, Dubai and are rated Baa2 by Moody's, BBB- by S&P and BBB- by Fitch,” Axis bank said in a statement.

The bonds were oversubscribed from investors in Asia, Middle East, Europe and the US… The coupon of 3.25 per cent is the lowest ever for a US Dollar deal of 5.5-year period, the bank said.

Barclays, Credit Agricole CIB, HSBC, JP Morgan and Standard Chartered acted as joint book-runners and lead managers.

“The Notes have been issued at a price of 99.656 to yield 3.319 per cent. The notes will be denominated in US dollars, and will bear fixed interest of 3.250 per cent per annum, with interest payable semi-annually in arrears. Axis Bank will apply the net proceeds to meet the funding requirement of its foreign branches and for general corporate purposes,” it added.

Sidharth Rath, President-Treasury, Business Banking & Capital Markets, Axis Bank said, "We are pleased to receive a warm welcome from investors on our return to the international bond markets after a long absence. The response demonstrates the global investor’s positive interest in the Indian economy and the banking sector."

Source : Thehindubusinessline


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