Now Reading: SBI raises $500 mn, BoB $700 mn via overseas bonds
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SBI raises $500 mn, BoB $700 mn via overseas bonds
State Bank of India has raised $500 million through a five-year Regulation S bond from its London branch, priced at a coupon of 5.25% and a spread of 88 bps over the…
The Story in Brief
State Bank of India has raised $500 million through a five-year Regulation S bond from its London branch, priced at a coupon of 5.25% and a spread of 88 bps over the 5-year US Treasury. The issue drew orders worth $2.46 billion from 145 investors, SBI said on Thursday. The bonds will be listed on SGX-ST, India INX and NSE-IX.
Separately, Bank of Baroda raised $700 million via a dual-tranche issuance from its GIFT City unit, $400 million in three-year notes at 5.114% and $300 million in five-year notes at 5.318%. The order book peaked at $2.7 billion, nearly 3.8 times the issue size. BoB said strong demand allowed it to tighten pricing from initial guidance, achieving its tightest-ever spread over US Treasury.
The Indian Opinion
Global confidence in Indian public sector banks is strong, but the tight spreads, 88 bps for SBI and 100 bps for BoB’s five-year, also reflect a benign dollar interest-rate climate. Glib talk of a ‘V-shaped’ India recovery often ignores that these are post-RBI swap window deals with specific timing. The real test will come when US rates rise or global risk appetite turns. Will Indian issuers still find such eager buyers then, or will the pricing discipline slip?
Sources (2): livemint.com, newindianexpress.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
