SBI all set for RIB roadshows

MUMBAI, July 24: State Bank of India, the country's largest commercial bank, will kick off the roadshow for the 2 billion Resurgent Ind...

MUMBAI, July 24: State Bank of India, the country8217;s largest commercial bank, will kick off the roadshow for the 2 billion Resurgent India Bond RIB issue in Dubai on July 26. Over the next ten days, seven teams of SBI Caps 8212; the lead arranger to the issue 8212; will tour the globe hawking the five-year deposit product to non-resident Indians NRIs and overseas corporate bodies OCBs. The issue will open on August 5.

At the first leg, one SBI Caps team will hold roadshows at Abu Dhabi, Bahrain, Kuwait, Singapore, Hong Kong, Bangkok and Jakarta 8212; the hub of NRIs. Parallel roadshows will be held in London, Frankfurt and Paris selling the five-year deposits denominated in dollars, pound sterling and Deutsche marks. The dollar deposit will carry a coupon of 7.75 per cent, pound sterling 8 per cent and DM 6.25 per cent.

quot;We are yet to chalk out the detailed schedule for roadshows. It has been decided that about seven teams will hawk the issue to NRIs across the globe barring those places where local laws donot permit pre-issue campaign,quot; said SBI Caps managing director A R Barwe. For instance, the SBI Caps team will visit South Africa to meet the NRIs but will not be able to hold any roadshows because of local regulations. Another likely quot;trouble spotquot; is the US where the regulatory authority 8212; Securities Exchange Council SEC 8212; has not yet given the green signal. quot;We are expecting the clearance next week. One team will visit New York, Washington, Chicago, Los Angeles, San Francisco and San Jose and another Pittsburgh and Canada,quot; Barwe said.

The RIBs will be eligible for investment by NRIs, OCBs and banks acting in a fiduciary capacity on behalf of NRIs and OCBs. Both the principal amount as well as interest 8212; payable half yearly or on a maturity basis 8212; are repatriated for NRIs. The face value of the bond will be 2000 for dollar denominated instrument, 1000 for pound sterling bonds and DM 3000 for Deutsche mark bonds.

Premature encashment of the bond will be permitted in Indian currency after sixmonths for the date of allotment without any penalty. The NRIs will be able to jointly hold the bond with resident Indians. The instrument 8212; which could be gifted to resident Indians 8212; will be transferable between NRIs and OCBs. The bonds will be exempted from income tax, wealth tax and gift tax. The tax benefits will be available to the donors as well as transferees.