BoB kicks off 5.5-year dollar bond sale

Public sector Bank of Baroda (BoB) started marketing a benchmark five-and-a-half-year dollar bonds, becoming the third Indian lender to offer notes within four business days, according to a person familiar with the matter.

The state-owned lender was marketing the notes at a spread of about 235 basis points over US Treasuries, the person said, declining to be identified before a public announcement. Benchmark typically means at least $500 million.

“There’s always demand from investors to buy Indian bank debt,” Scott Bennett, Aberdeen Asset Management Asia’s head of credit, said.