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IndusInd Bank prices maiden dollar bond at 185 bps over US Treasury yield

IndusInd Bank on Tuesday priced its maiden dollar-denominated three-year public bond issue at 185 basis points (bps) over the corresponding US treasury yield. The bank raised $400 million at a coupon rate of 3.875% per annum, payable semi-annually.

The notes, which carry a final rating of Baa3 from Moody’s, will be listed on the Singapore stock exchange and the India INX, Gift City. The initial price guidance stood at 210 bps over the US Treasury. The bank indicated that with 3.5 times over-subscription, the final price tightened by 25 bps. On Tuesday, the three-year US treasury yield was trading at 2.28%.

“The issue received an overwhelming response and saw strong interest from investors across Asia, Europe, the Middle East and Africa with a final order book in excess of $1.4 billion across 130 accounts,” the bank indicated.

IndusInd Bank managing director and chief executive officer Romesh Sobti said the issuance gives the bank not only an important source of funds diversification, but also an enhanced capability to support the growth aspirations of its Indian clients that are expanding in the region and globally.

Bank of America-Merrill Lynch, Barclays, Citigroup, CLSA, HSBC (B&D), JP Morgan and Standard Chartered Bank acted as joint book-runners and joint lead managers for this offering.

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