Mumbai : Bank of Baroda is planning a $500-million bond issue and will go for a roadshow in Feb.2014. Though the bank has not decided on the duration of the bonds, sources say that five years will be the preferred tenure.

The issue was rated “BBB-” by Fitch Ratings on Monday. The bonds issued by the private sector bank will have a Reg S status, which means the bonds need not be registered with the US Securities and Exchange Commission

The state-owned had last tapped the international markets in February 2011 when it had raised $500 million under its medium term note (MTN) programme. The pricing of the issue is expected to be closer to 275-300 bps over the five year US Treasury, sources said.

Investment bankers expect that the pace at which Indian companies raise overseas funds will be slower this year, as compared with what it was last year. Indian companies raised close to $12 billion in dollar-denominated bonds last year, 750 million in euro-bonds and SGD 1.27 billion in Singapore dollar bonds.Indian Railway Finance Corporation had recently announced a $600 million overseas bond issue, for which it plans to conduct roadshows in the second week of January. Bharti Airtel and ICICI Bank were the last two companies that mopped up overseas money last year.

Bank of Baroda has informed BSE that a meeting of Board of Directors of the Bank will be held on February 06, 2014 to consider & approve the un-audited (Limited Reviewed) Financial Results of the Bank for the quarter/ nine months ended December 31, 2013, together with relevant segment reporting. Submitting the proceedings of the EGM, further on January 18, 2014 Bank of Baroda had informed BSE that , the Allotment Committee of the Bank has issued and allotted 81,58,784 Equity shares of Rs. 10/- each fully paid up at issue price of Rs. 674.12 aggregating to Rs. 549,99,99,470.08 (Rs Five hundred forty nine crore, ninety nine lacs, ninety nine thousand, four hundred seventy and paise eight only) to Government of India (President of India) on preferential basis, as per SEBI Guidelines.

Source : Sachin Murdeshwar