BANKING-UTI-BONDS

HONG KONG, Jan 23: A 0 million bond issue from UTI Bank was oversubscribed on Tuesday, the day it opened, as investors clamoured for relatively scarce bonds from an economy growing at more than a nine percent annual rate.

UTI Bank became the third Indian bank to sell offshore bonds this year -- a large number by Indian standards -- as the sector stretches to feed a loan portfolio growing at an annual pace of 29 percent.

Annual deposit growth is a more sober 20 percent.

UTI Bank set a price guidance of 47 to 50 basis points over three-month LIBOR (London Interbank Offered Rate) for the deal, which received orders worth more than 0 million, hours after investor presentations were launched.

The deal is managed by Citigroup and Deutsche Bank and is likely to be priced during London trading hours on Tuesday.

Last week, State Bank of India , the country's biggest bank sold bonds at the tight end of its indicated yield range within 24 hours of the deal's announcement. The 0 million issue attracted more than 0 million in orders.

Earlier this month, a HONG KONG, Jan 23: A $250 million bond issue from UTI Bank was oversubscribed on Tuesday, the day it opened, as investors clamoured for relatively scarce bonds from an economy growing at more than a nine percent annual rate.

UTI Bank became the third Indian bank to sell offshore bonds this year -- a large number by Indian standards -- as the sector stretches to feed a loan portfolio growing at an annual pace of 29 percent.

Annual deposit growth is a more sober 20 percent.

UTI Bank set a price guidance of 47 to 50 basis points over three-month LIBOR (London Interbank Offered Rate) for the deal, which received orders worth more than $700 million, hours after investor presentations were launched.

The deal is managed by Citigroup and Deutsche Bank and is likely to be priced during London trading hours on Tuesday.

Last week, State Bank of India , the country's biggest bank sold bonds at the tight end of its indicated yield range within 24 hours of the deal's announcement. The $200 million issue attracted more than $400 million in orders.

Earlier this month, a $2 billion bond issue from ICICI Bank , the country's second-biggest lender, attracted orders of about $8 billion. Spreads on these bonds have tightened from the issue levels as investors bought in secondary market deals.

REUTERS billion bond issue from ICICI Bank , the country's second-biggest lender, attracted orders of about billion. Spreads on these bonds have tightened from the issue levels as investors bought in secondary market deals.

REUTERS