Thursday, May 10, 2007

REVENUE STRATEGY – BANK OF BARODA

Bank of Baroda Ltd., India's fifth- biggest lender by assets, is seeking to expand its overseas business, boost capital and meet record credit growth in the world's second-fastest growing major economy.

So:
1. It plans to sell at least $250 million of bonds to boost its capital. (Bond investors pay a lower price for subordinated debt than regular bonds as recompense for being paid later than other claimants in the event of a bankruptcy.)
2. The bank will meet investors in Singapore, Hong Kong and London next week to market the securities, which count as Tier-2 capital, one of the forms of capital that regulators require banks to hold to absorb losses
3. It has hired Deutsche Bank AG, Citigroup Inc. and Barclays Plc to arrange the sale.
4. It will later sell a $1.5 billion medium-term note program.

Do you ever worry about where all this growth is leading us?

Will everyone below the poverty line be uplifted one day?

Does planet earth have the capacity for all this growth (like the universe keeps expanding and changing the co-ordinates of infinity)?


[Click here for full story at: BLOOMBERG.COM]

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