Asia Bizz :The Bank of India became the second Indian bank in history of the country to sell a 10 year senior bonds amounting to $750 million. The $750 million dual-tranche bond was sold out from the London branch, creating history for the in Indian based public sector bank. The deal exploded in the following manner, a $250 million bond for September 2015 was issued last year and on Friday a new $500 million bond was created.

This is the second only Indian bank to give away a bond comprising of such a high value, the other being ICICI which had made a $1 billion deal last year in the month of November. The banks which have arranged this humongous deal are as follows – Barclays Capital, Deutsche Bank, HSBC, Royal Bank of Scotland and Standard Chartered.

Bank of India made the bond with a Treasuries plus 260bp that will generate a 6.305% yield in the future. On the other hand the Tap has 235bp to yield 4.705%.Initially the bonds had a tight response in the market, but later in the day they slowly began to soften down.


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