Axis Bank may raise atleast $500 million by selling bonds

Mumbai: Axis Bank Ltd, India’s third largest private sector bank could raise at least $500 million by selling bonds to investors in Asia and Europe, two people with knowledge of the deal said.

“They are looking to raise at least $500 million but may keep more if demand is good,” one of the persons said, adding that the bond issue is likely to close later today. The bonds will be listed on the Singapore Stock Exchange.

The bonds are likely to mature in five-and-a-half years and will be issued under the so-called Regulation ‘S’ transaction, which does not allow investors based in the US to buy these bonds.

Barclays Plc, Hong Kong and Shanghai Banking Corp Ltd (HSBC), Stanadard Chartered Plc, JP Morgan Chase and Co. and Credit Agricole CIB are the bankers to the issue.

The bonds will be sold through the bank’s Dubai International Finance Centre (DIFC) branch.

Separately, Bloomberg reported that the initial pricing guidance for the bond is 195 basis points above the five-year US treasury.

One basis point is 0.01 percentage point.

The five-year US treasury was trading at 1.56% in Asian trade on Monday.

Bloomberg also said that the bond sale, if successful, will be the first one from Axis Bank in almost three years.

Axis Bank