Overseas bond sale: SBI raises $500 million

SBI chairman Arundhati Bhattacharya said, “We are pleased to see the robust demand for our transaction and the strong perception of our credit by the international investor community ....”

By: ENS Economic Bureau | Mumbai | Published:January 18, 2017 12:53 am
Overseas bond sale, bond sale, State Bank of India, Fixed Rate Notes, MTN, Medium Term Note, Arundhati Bhattacharya, indian express business, banking Arundhati Bhattacharya, Chairman, SBI. (File Photo)

State Bank of India has successfully raised and priced its $500 million senior unsecured Fixed Rate Notes under its $10 billion Medium Term Note (MTN) programme. The 5-year bond, placed through its London Branch, was priced at a spread of 145 bps over the 5-year US Treasury, equivalent to a price of 99.744 per cent and yield of 3.306 per cent per annum. The offering will be denominated in US dollars, and will bear fixed interest of 3.25 per cent per annum with interest payable semi-annually in arrears. The bonds will mature on January 24, 2022.

The transaction saw strong interest from investors with an order book in excess of $1.5 billion across 170 accounts, underscoring SBI’s strong credit profile and its position as India’s largest bank, SBI said. SBI chairman Arundhati Bhattacharya said, “We are pleased to see the robust demand for our transaction and the strong perception of our credit by the international investor community ….”

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