Public sector lender Syndicate Bank is looking to hit the overseas bond market and has hired banks to conduct road shows. Earlier in the month, the Bangalore-based bank had said it was looking to raise $350 million as part of a medium-term note (MTN) programme.
?Syndicate Bank, acting through its London branch, has appointed six banks to organise meetings with bond investors in Asia, Europe and the Middle East, starting May 23,? said an investment banker close to the deal.
The meetings may result in the bank offering US dollar-denominated Reg S senior notes subject to market conditions, the banker added.
According to Bloomberg news, Syndicate Bank has hired Citigroup, Deutsche Bank, HSBC, SBI Capital Markets and Standard Chartered Bank to organise a series of fixed-income investor meetings.
In May, Syndicate Bank had got approval from its board of directors to raise equity capital of R1,500 crore by way of a qualified institutional placement, rights issue or any other mode approved by the Reserve Bank of India.
The board also approved the raising of Basel-II- Complaint Tier-II Capital up to R1,150 crore.
On May 13, Bharti Airtel concluded one of the largest overseas bond issues and raised $1 billion in dollar-denominated bonds and 750 million euros in euro-denominated bonds. The dollar bond was raised at 10-year treasuries plus 270 basis points, while the euro bond was raised at euro mid swaps plus 225 bps.