Press Esc to close
Friday 03 July 2015
News updated at 10:34 PM IST
Weather
Max: 33°C
Min : 21°C
In Bengaluru
Rain lightly

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
Monsoon rain clouds hover over the backdrop of Kitthur Rani Chennamma statue near Town Hall...

Monsoon rain clouds hover over the backdrop of Kitthur Rani Chennamma statue near Town Hall...

Protesters run for cover after police fired teargas shell to disperse them during a clash...

Protesters run for cover after police fired teargas shell to disperse them during a clash...

A gust of wind bends the umbrella of a street vendor crossing the road during a heavy downpour...

A gust of wind bends the umbrella of a street vendor crossing the road during a heavy downpour...

Indian Muslims offer prayers during Ramadan at the Vasi Ullah mosque in Allahabad...

Indian Muslims offer prayers during Ramadan at the Vasi Ullah mosque in Allahabad...

Buddhist monks from Thailand offer special prayers for making a new Temple...

Buddhist monks from Thailand offer special prayers for making a new Temple...

A worker drying up vermicelli at a factory in Allahabad on Friday during Ramadan...

A worker drying up vermicelli at a factory in Allahabad on Friday during Ramadan...

Bollywood actors Amit Sadh, Aditi Rao Hydari and Arshad Warsi at the launch of a new multiplex...

Bollywood actors Amit Sadh, Aditi Rao Hydari and Arshad Warsi at the launch of a new multiplex...

Indian High Commissioner Ranjan Mathai hosts two winners of the Queen's Young Leaders award...

Indian High Commissioner Ranjan Mathai hosts two winners of the Queen's Young Leaders award...

Engine of Delhi - Rewari passenger train catches fire near Garhi Harsaru village in Gurgaon...

Engine of Delhi - Rewari passenger train catches fire near Garhi Harsaru village in Gurgaon...

Actor-couple Soha Ali Khan and Kunal Khemu at an event in Bengaluru...

Actor-couple Soha Ali Khan and Kunal Khemu at an event in Bengaluru...

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