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Overseas Bond Sale Helps SBI Raise Rs. 6875 Crores

On Thursday, from an overseas-dollar-dominated bond sale, State Bank of India was able to raise $ 1.25 billion (Approx Rs. 6875 Crore in Indian Currency). For the record, this would be considered as the largest single-tranche offering by a public sector bank from India. A 4.125 per cent five-year-note was issued by SBI London branch which would be due in July 2017 at 375 basis points.

SBI Logo

SBI Logo

In addition, this was spread over five-year Treasuries. The note would also be another record for it would be the lowest ever coupon achieved for an Indian insurer. According to a banker who is close to the development, this decision would be something new in the US dollar bond market in about five years.

Since May 2011, this would be considered as the first public sector bank US dollar bond issuance out of India. The other time that this was done was way back in February by the Axis Bank. In order to manage the debt sale, the SBI had hired global giants like Citigroup, Bank of America and Deutsche Bank.


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