India Axis Bank in talks for $300 mln bonds-exec
By Anurag Joshi
MUMBAI, June 12 (Reuters) - India's Axis Bank (AXBK.BO) is talking with overseas investors about raising up to $300 million through the sale of bonds with maturities of two to three years, the bank's treasury head said on Friday.
"Based on the growth of the books, we may be doing some deals... $200-300 million. We are looking at two, three years," Bapi Munshi, President of Treasury told Reuters.
Munshi said the bank was looking to raise the funds at under 200 basis points over Libor (London Interbank Offered Rate), but investors were expecting a spread of around 325 basis points.
"It (sentiment) is much better compared to say 2 months back. People are willing to take the risk, but definitely pricing is an issue," he said.
"Our expectation is that spreads would come down further, and maybe September will be the opportunity when we may some improved spreads for us," Munshi said.
Axis Bank opened a 20 billion-rupee ($420 million) lower Tier-II bond issue this week, and the sale closes on June 17. [ID:nBMB005483]
The bank has a board approval to raise a total of 30 billion rupees via Tier-II subordinated debt from the domestic and overseas markets, Munshi said. ($1 = 47.6 Indian rupees) (Editing by John Mair)
