Bloomberg News

India’s Axis Bank Plans Benchmark Sale of U.S. Dollar Bonds

February 27, 2012

Axis Bank Ltd. (AXSB), India’s third- biggest private sector lender, is marketing a benchmark U.S. dollar-denominated bond sale, its first issue since November 2010.

The 5 1/2-year senior unsecured notes will probably price today, Anil Kumar, senior vice president and head of global the financial institutions division, said today in a telephone interview from Mumbai. Axis Bank may price the benchmark offering to yield about 450 basis points more than similar- maturity Treasuries, he said. Benchmark typically means at least $500 million.

The Mumbai-based lender hired Barclays Plc (BARC), Citigroup Inc. (C), HSBC Holdings Plc (HSBA), JPMorgan Chase & Co. (JPM), and Standard Chartered Plc (STAN) to manage the sale, Kumar said.

Axis Bank would be the third Indian company to sell bonds overseas this year, data compiled by Bloomberg show. Reliance Industries Ltd. (RIL), India’s biggest company by market value, raised $1.5 billion selling dollar-denominated debt, and Rural Electrification Corp., a state-controlled lender to power projects, raised $219 million in Swiss franc-denominated debt, according to the data.

Axis Bank has the equivalent of $3.03 billion of debt due by 2049, according to data compiled by Bloomberg. It last sold dollar bonds in October 2010, raising $500 million, the data show.

To contact the reporters on this story: Anurag Joshi in Mumbai at ajoshi53@bloomberg.net; Tanya Angerer in Singapore at tangerer@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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