ADB 10-year Rs 500-crore Bond Issue Priced At 5.4%

Mumbai, Feb 25: | Updated: Feb 26 2004, 05:30am hrs
The Asian Development Banks (ADB) Rs 500-crore bond issue has been oversubscribed by two times. The 10-year issue has been priced at 5.4 per cent which is payable semi-annually, HSBC one of the lead arrangers to the issue said on Wednesday in a press communique.

The effective yield would be 17 basis points above the 7.37 per cent 2014 government security.

Though it is not yet known who are the subscribers to the bond, it is learnt that banks, mutual funds and insurance companies have shown great interest in investing into the issue.

The issue is the first of its kind after the regulators allowed multilateral agencies to raise funds from the local market. HSBC and I-Sec was the lead arrangers to the issue while Bank of India and Union Bank of India are the co-arrangers.

Pertinent is to note here that the regulators had allowed multilateral development banks to raise resources from the domestic market through rupee-bonds as part of measures for further liberalisation.