Press Esc to close

SBI raises one billion dollar via bond sale

Mumbai, Apr 12, 2013, (PTI): 10:17 IST
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

More from this section
Most trending stories
Photo Gallery
A farmer burns the residue of her sugarcane crop at her farm on a cold foggy morning...

A farmer burns the residue of her sugarcane crop at her farm on a cold foggy morning...

Kite-enthusiasts display a kite with an image of Kulbhushan Jadhav during International Kite...

Kite-enthusiasts display a kite with an image of Kulbhushan Jadhav during International Kite...

Honey bees visit a flower near Vijay Chowk area in New Delhi...

Honey bees visit a flower near Vijay Chowk area in New Delhi...

A squirrel eats corn grains on a cold winter morning in Bhopal ...

A squirrel eats corn grains on a cold winter morning in Bhopal ...

Jawans near the coffin of late Head Constable A Suresh, who was killed in a ceasefire violation...

Jawans near the coffin of late Head Constable A Suresh, who was killed in a ceasefire violation...

Miss World 2017 Manushi Chhillar and actor Rekha pose for a picture...

Miss World 2017 Manushi Chhillar and actor Rekha pose for a picture...

Actor Sunny Leone gives her measurement for her wax statue to be displayed at Madame Tussauds...

Actor Sunny Leone gives her measurement for her wax statue to be displayed at Madame Tussauds...

A woman dries red chillies at a field in a village near Jodhpur on Thursday....

A woman dries red chillies at a field in a village near Jodhpur on Thursday....

Pope Francis holds a cross that reads in Spanish

Pope Francis holds a cross that reads in Spanish "I give you my peace" upon arrival...

A villager displays a mortar shell allegedly fired on a residential area from the Pakistan...

A villager displays a mortar shell allegedly fired on a residential area from the Pakistan...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.