Mumbai: State-owned Rural Electrification CorporationNSE -0.07 % raised about $650 million via offshore bonds, which are seen as a proxy for the government’s first sovereign overseas borrowings.
Such debt was expected to be priced 195 basis points over the five-year US Treasury as they will mature in five years, said two people with direct knowledge of the matter. REC’s bonds opened for subscription on Thursday across global centres.
Finally, the pricing was tighter, with the spread at 167.5 basis points. Banks sought to link it with the sovereign bond sales expected later this year. Demand for the bonds was more than four times higher at $2.7 billion, bankers said.
