IFR-Syndicate Bank USD 5.5 yr Reg S T+380bp area

Last Updated: Tue, Oct 09, 2012 04:50 hrs

HONG KONG, Oct 9 (IFR) - India's Syndicate Bank (Baa2/BBB-) is in the market this morning, a month after IDBI sold the last Indian bank deal, as it looks to price a 5.5-year Reg S bonds. Initial price talk is for 380bp over 5-year US Treasuries.

The deal is off its USD1bn Euro MTN programme.

There is also an event of default included in the terms, which would be triggered if the government ceases to own more than 50% of voting rights. The government currently owns around 66% in the bank.

Citigroup, Deutsche Bank, HSBC, JP Morgan and Standard Chartered Bank are leads on the deal, which is slated to be today's business.

The deal announcement follows investor meetings which concluded on September 27.

For the quarter ended June, the bank posted a net profit of INR4.40bn (USD79m), which was up 28.4% year-on-year.

Leads are marketing the new deal relative to its outstanding bonds maturing in November 2016, which were trading around T+333bp.

In mid-September IDBI Bank (Baa3/BBB-) had priced a USD500m 5.5 year Reg S deal at T+370bp after sending out an initial price talk of T+395bp.

More from Sify: