Mumbai: State-owned Indian Overseas Bank (IOB) on Tuesday said it has raised USD 500 million through Medium Term Notes (MTN) through its branch in Hong Kong.

"...the Bank has raised USD 500 million (second and final tranche) by way of Senior Unsecured Bonds, under Medium Term Note (MTN) Programme of USD 1 billion on August 13, 2012 through the Bank's Hong Kong branch," the bank said in a filing to the BSE.

The notes will be issued on August 21, 2012 and will be listed in Singapore Stock Exchange, it said, adding it will mature on February 21, 2018.

"The bonds have been raised at the coupon rate of 4.625 percent per annum," it said.

An MTN is a debt note that usually matures in 5-10 years. They can be issued on a fixed or floating coupon basis.

The bank had raised similar funds last year for its overseas operations on growing business activity in Hong Kong and Singapore.

Shares of the IOB rose 1.54 percent to Rs 72.30 apiece on the BSE at closing.


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