Midsized private sector lender IndusInd Bank, which is raising USD 400 million in its maiden overseas bond sale, Tuesday said it got a strong response helping it tighten the pricing by 25 bps to 3.875 per cent. The order book for the three-year dollar money stood at USD 1.4 billion from 130 accounts and bids have come from investors across geographies, the bank said in a statement.
The strong investor response helped the bank to tighten the pricing by 0.25 per cent from the initial guidance and the final coupon has been fixed it at 3.875 per cent, it said in a statement.
The lender had initially given price guidance of 2.10 per cent over the US Treasury, while the final pricing has come in at 1.85 per cent over the US T-bills, it said. "The bond issue gives us not only an important source of fund diversification but also an enhanced capability to support our clients," managing director and chief executive Romesh Sobti was quoted as saying in the statement.
Typically, domestic lenders deploy funds from the overseas bond issue for on-lending to Indian corporates who require loans against their foreign currency receivables.
As part of its medium-term note programme, the bonds will be listed on the Singapore Exchange and the India International Exchange of the BSE (India INX), it said. Bank of America-Merrill Lynch, Barclays, Citigroup, CLSA, HSBC, JP Morgan and Standard Chartered Bank acted as joint book-runners and joint lead managers to the issue.
(With inputs from agencies.)