Now Reading: SBI raises $500 million via overseas bonds, gets $2.46 billion bids
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SBI raises $500 million via overseas bonds, gets $2.46 billion bids
SBI raises $500 million via overseas bonds, gets $2.46 billion bids
State Bank of India has raised $500 million by issuing bonds through its London branch at a coupon rate of 5.25 per cent. The Regulation S bond is benchmarked against the 5-year…
The Story in Brief
State Bank of India has raised $500 million by issuing bonds through its London branch at a coupon rate of 5.25 per cent. The Regulation S bond is benchmarked against the 5-year US Treasury and priced at a spread of 88 basis points over the benchmark.
The issue attracted strong investor interest, with a peak order book of $2.46 billion from 145 investors. SBI said the bonds will be listed on SGX-ST, India INX and NSE-IX. The transaction was managed by seven joint bookrunners including BNP Paribas, Citigroup and HSBC.
The Indian Opinion
SBI's tight pricing amid global uncertainty is being hailed as proof of India's 'growth story', but one bond issue does not make a trend. The real test will come when smaller Indian banks and corporates try to raise similar amounts. Are global investors equally bullish on other Indian credits, or is this just confidence in a state-owned giant?
Source: livemint.com
This story was synthesised by AI from the source linked above.
