By Reshmi Basu
New York, Sept. 14 - Bank of India sold an upsized offering of $240 million in 15-year upper tier II bonds (Baa2/BB-) at 99.625 to yield mid-swaps plus 138 basis points, according to a market source.
The deal, increased from $200 million, priced below revised price guidance of 140 to 145 basis points over mid-swaps. Guidance had been lowered from 145 to 155 basis points.
The issue is non-callable for 10 years. If not called, the coupon steps up to six-month Libor plus 238 basis points.
There were more than $1.2 billion in orders in the book.
Barclays Capital, Citigroup, Deutsche Bank and HSBC were bookrunners for the Regulation S transaction. Also, the deal comes off the bank's euro medium-term note program.
Bank of India is a state-run bank based in Mumbai, India.
| Issuer: | Bank of India
|
| Amount: | $240 million
|
| Issue: | Upper tier II bonds
|
| Maturity: | Sept. 22, 2021
|
| Coupon: | 6 5/8%
|
| Issue price: | 99.625
|
| Spread: | 138 basis points over mid-swaps or 490 basis points over Treasuries
|
| Call option: | Callable on Sept. 22, 2016, if not called, coupon steps up to six-month Libor plus 238 bps
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 21
|
| Joint bookrunners: | Barclays Capital, Citigroup, Deutsche Bank, HSBC
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BB-
|
| Price guidance: | 145 to 155 bps over mid-swaps
|
| Distribution: | Regulation S
|
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