Press Esc to close
Sunday 07 February 2016
News updated at 11:08 AM IST
Weather
Max: 32°C
Min : 18°C
In Bengaluru
Partially cloudy

SBI raises one billion dollar via bond sale

Mumbai, Apr 12, 2013, (PTI):
File Reuters Image

SBI has mopped up one billion dollars in an international bond sale programme, according to one of the merchant bankers Citigroup.

"SBI successfully sold its five-year senior unsecured bond (REG S)at 255 BPS over the US treasury yielding a coupon of 325 base per annum raising one billion dollars through its London branch. The issue was closed late last night," Citigroup told PTI today.

However, SBI could not be contacted this morning for comments, though Chairman Pratip Chaudhuri yesterday had confirmed that the issue was to be closed late last night.

At 325 base, this could be the tightest money raised by a domestic corporate in a foreign market.

The merchant banker also said the fixed bonds, which were sold to raise USD 1 billion, will be listed on the Singapore Stock Exchange and has a Baa2 rating from Moody's and BBB- by Standard & Poor's.

This is the third bond sale by SBI in the past two years, with the latest being the USD 1.25 billion, it had raised in a 10-year issue last July. That issue was the largest-ever from a domestic bank and also the cheapest five year-issue by a domestic issuer.
At 3.75 per cent over the US treasury bills, the SBI issue was the cheapest-ever by a domestic company till date with the effective coupon rate, payable half-yearly, working out to be just 4.125 per cent.

SBI had mopped up another USD 1 billion in July 2010 also. The bank has a board mandate to raise USD 10 billion from overseas over the next few years, and it has a headroom to raise nearly USD 6 billion more, including the current issuance, since it had raised nearly USD 4 billion till last year.

With the SBI issue, so far this year, domestic companies like Reliance Industries, Bharti Airtel, ICICI Bank, HDFC Bank, Exim Bank, PowerGrid, and Tata Communications among others, have raised a whopping USD 7.5 billion, which is 75 per cent of what India Inc mopped in the entire previous year.


Go to Top

Photo Gallery
CRPF women wing showing their skills at Lucknow Mahotsav on Saturday...

CRPF women wing showing their skills at Lucknow Mahotsav on Saturday...

Cricketer Mahendra Singh Dhoni celebrating the first birthday of his daughter Ziva...

Cricketer Mahendra Singh Dhoni celebrating the first birthday of his daughter Ziva...

Supporters of the lesbian, gay, bisexual and transgender community attend the 'Pride March'...

Supporters of the lesbian, gay, bisexual and transgender community attend the 'Pride March'...

Guest lecturers staged a protest in front of District in charge minister Qamarull Islamaaos house...

Guest lecturers staged a protest in front of District in charge minister Qamarull Islamaaos house...

Participants perform yoga during the “Yoga Festival celebration of Peace & Harmony”...

Participants perform yoga during the “Yoga Festival celebration of Peace & Harmony”...

Indian swimmer Shivani Kataria shows her gold medal that she wom in women's 200-metre freestyle...

Indian swimmer Shivani Kataria shows her gold medal that she wom in women's 200-metre freestyle...

Gold Medal winner Priyanka Singh of India (C), silver medal winner SPS Niroshani of Sri Lanka (L)...

Gold Medal winner Priyanka Singh of India (C), silver medal winner SPS Niroshani of Sri Lanka (L)...

Gold medal winner Harshdeep of India, silver medal winner Chamari Mendis...

Gold medal winner Harshdeep of India, silver medal winner Chamari Mendis...

India's Guru Raja competes to win gold in the 56 kg men's weightlifting event...

India's Guru Raja competes to win gold in the 56 kg men's weightlifting event...

Gold medal winner in 30 kilometre cycle race Bidyalaxmi Tourangbam (C), silver medal winner Chaoba..

Gold medal winner in 30 kilometre cycle race Bidyalaxmi Tourangbam (C), silver medal winner Chaoba..

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523