Bank of India seeking to place dollar-denominated 15-year non-call-10 upper tier 2 bonds

By Paul A. Harris

St. Louis, Aug. 21 - Bank of India is expected to come to the global bond market soon with a dollar-denominated offering of 15-year upper tier 2 bonds, according to a market source, who added that the paper is expected to come with 10 years of call protection.

Neither the size of the offering, the exact timing nor the syndicate had been determined as of Monday afternoon.

The source said that the Bank of India paper should come 40 to 50 basis points behind that of the recently placed UTI Bank Ltd. 7¼% upper tier 2 bonds (Baa3/BB-). That Indian financial institution placed its $150 million issue at Treasuries plus 175 basis points on Aug. 4.

Bank of India, a state-run bank based in Mumbai, India, last placed dollar-denominated debt in late September 2005 in the form of a $250 million issue of 5 3/8% senior unsecured fixed-rate notes (Baa3/BB+), which priced at mid-swaps plus 85 basis points, or a 103.8 basis points spread to comparable Treasuries.

Barclays Capital ran the books for that Regulation S placement.

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