In its maiden Singapore Dollar bond issue, public sector IDBI Bank has raised $ 250 million for a 3-year maturity carrying a fixed coupon of 3.65%. The order book was oversubscribed by 12 times and is the first benchmark public bond transaction by any Indian entity in the Singapore Dollar bond market, said the bank.
The transaction was announced on August 21, as a SGD benchmark 3-year bond in the 4% area. The bank said that the books grew rapidly and soared to over $ 1 billion within 2 hours of opening and enabled the announcement of a significantly tighter final guidance of 3.70% area post lunch in Singapore. The book continued to grow to over $ 3 billion, allowing the final pricing outcome of 3.65% at the tight end of the final price guidance.
“The issue achieved the tightest pricing for any benchmark 3-year senior bond issue by any bank in the SGD market during 2012 year till date,’’ said the bank.
The transaction attracted interest from a diversified array of investors including private banks (65 per cent), asset managers (17 per cent) and banks (18 per cent). Around 78 per cent of the book size came from Singapore, with the balance 22 per cent being from Hongkong and other geographies.
DBS Bank, HSBC Bank and Standard Chartered Bank acted as joint book runners and lead managers to the transaction.