Axis to Mop up $500 mil­lion through MTNs

The Economic Times - - Finance & Commodities - Our Bu­reau

Kolkata | Mum­bai: Axis Bank has raised $500 mil­lion in bonds as part of its $5 bil­lion global medi­umterm note pro­gramme. The bank has man­aged to ob­tain a finer pric­ing as it of­fered about 25 ba­sis points less than what it had planned ini­tially. The dol­lar-de­nom­i­nated bonds yielded 3.11% as it added a spread or mark-up of 130 ba­sis points over and above the fiveyear US Trea­sury yields. In­sti­tu­tional in­vestors from Asia, Africa, Europe and the US have in­vested in the pa­per, said an in­vest­ment banker fa­mil­iar with the mat­ter.

“We have re­ceived over­whelm­ing in­vestor re­sponse across the re­gions with more than 150 of them show­ing in­ter­est,” said Shashikant Rathi, head of trea­sury at Axis Bank. “We have man­aged to price the bonds be­low the com­pa­ra­ble se­condary mar­ket level yields. We have not paid any new-is­sue pre­mium.” “We will use the pro­ceeds to re­fi­nance our ex­ist­ing over­seas li­a­bil­ity,” he said. The bank has gar­nered an or­der book go­ing up to $1.80 bil­lion since the be­gin­ning of the sales process. But, it re­jected the over­sub­scrip­tion part.

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