The majority government-owned Industrial Development Bank of India IDBI raised $300 million yesterday Wednesday through a five-year bond. The deal did not close as heavily oversubscribed as a forerunner from ICICI, but this was, perhaps, hardly surprising given the latter's recent secondary market performance and emerging markets volatility.
With Citigroup and JPMorgan as lead managers, IDBI priced its deal at the mid point of its indicative range. Backed by a Baa3BBBB Fitch rating, the deal was priced at 99.653% on a coupon of 4.75% to yield 4.82%. This equated to a Treasury spread of 185bp and Libor spread of 145bp. Fees were 22.5bp.
At this level, the...
