Earlier this month, IDBI Bank had raised $300-million under its $5-billion medium term notes issue at 350 basis points over the 5-year US treasury, or an effective yield of 5.061 per cent.
Earlier this month, telecom major Bharti had raised $400 million or 350 million Swiss francs from the Swiss market in a six-year money. This was Bharti's second bond sale this year after it had raised 250 million euros in January in the run-up to spectrum auctions. Last March, the company had raised $1.5 billion in overseas debt sale in two tranches.
The domestic companies overseas bond street journey was opened by Indian Railway Finance Corporation in early January with a $500-million issue, which got subscriptions of $3 billion and was priced at a coupon of 3.917 per cent.
After a massive bond sale last year worth $16 billion, up 60 per cent over 2012, the domestic companies have been going slow to tap international bond market following rising interest rates there.
The overseas fund raising ebbed after the May 24 tapering talk by the Federal Reserve, which spiked interest rates in Western markets. Since then there were only a few issues including HDFC Bank's $500 million in October in December.