IDBI Bank wraps up first Indian dim sum

IDBI Bank, acting through its Dubai International Financial Centre branch, priced the first offshore renminbi bond for an Indian issuer late Friday afternoon. The Rmb650 million $102 million three-year offshore renminbi bond priced at par to yield 4.5%, in line with the final guidance and slightly tighter than the initial guidance in the area of 4.625%.

The deal enables IDBI to diversify its funding sources and also raise funds at a slightly cheaper cost than it could in the dollar bond market, where there is an over-supply of Indian banks waiting to launch deals.

IDBI’s offshore renminbi bond also offered investors a taste of two nascent...