Indian Overseas Bank was utilizing the services of Moody’s for international rating. Moody’s rating was necessary for the Bank at the time of issuance of MTN bonds amounting to USD 1.00 Billion which was raised in Singapore and Hong Kong in two tranches of USD 500 Mio each one in 2011 and another in 2012.
At the time of floating MTNs during 2011/2012, Bank entered into Rating agreement with Moody’s Investors Services and had opted for the following ratings:
1. Bank Deposit and Financial Strength Rating (BFSR) and
2. Medium Term Notes (MTN) Program Rating
Bank had redeemed the MTN in two tranches of USD 500 Mio each on 19.10.2016 and 21.02.2018.
The Bank is mobilising deposit in both domestic as well as overseas branches from public. Our overseas branches continue to actively borrow in the inter-bank market for onward lending.
Since the Bank has no immediate plan to mobilise funds through MTN programme, Bank requested Moody’s Investor Services during Feb’ 21 to withdraw the ratings.
Based on Bank’s request, Moody’s Investor Service published its rating action for withdrawal of ratings of Indian Overseas Bank