Press Esc to close
Thursday 23 October 2014
News updated at 3:38 PM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Sunny day

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
Hindu priest performs evening prayers called 'Aarti' on the banks of the river Yamuna...

Hindu priest performs evening prayers called 'Aarti' on the banks of the river Yamuna...

Dakshineswar Temple decorated with lights for the Kali Puja and Diwali at North 24 Pargana...

Dakshineswar Temple decorated with lights for the Kali Puja and Diwali at North 24 Pargana...

Firecrackers light up the sky as people celebrate Diwali festival in Mumbai...

Firecrackers light up the sky as people celebrate Diwali festival in Mumbai...

School students lighting earhen lamps at Tulsi Ghat in Varanasi...

School students lighting earhen lamps at Tulsi Ghat in Varanasi...

A view of decorated Madan Mohan Malviya Stadium with oil lamps during Deepwali festival...

A view of decorated Madan Mohan Malviya Stadium with oil lamps during Deepwali festival...

Illuminated Golden Temple on the eve of Diwali in Amritsar...

Illuminated Golden Temple on the eve of Diwali in Amritsar...

Children with special needs light firecrackers as they celebrate Diwali...

Children with special needs light firecrackers as they celebrate Diwali...

Border Security Force (BSF) soldiers enjoy Diwali celebrations on the eve of Diwali...

Border Security Force (BSF) soldiers enjoy Diwali celebrations on the eve of Diwali...

Hindu priests light oil lamps in a formation of the 'Swastika', a Hindu symbol of peace...

Hindu priests light oil lamps in a formation of the 'Swastika', a Hindu symbol of peace...

A Border Security Force (BSF) soldier lights sparklers on the eve of Diwali...

A Border Security Force (BSF) soldier lights sparklers on the eve of Diwali...

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