State Bank of India has mopped up $1.2 billion from the international market through five-year medium-term notes (MTN) after drumming up subscriptions for $6.8 billion.
Countrys largest lender has priced its bonds 375 basis points above the US treasury,lower than the guidance of 400 basis points that it had given at the launch of the issue.
The spread over the US treasury was subsequently lowered to 380 bps following the strong response from investors. The bonds will carry a coupon of 4.125 per cent.
SBI received around 47 per cent of the subscription from investors across Asia,22 per cent from Europe and 31 per cent from the US.
SBI notes offer the lowest ever coupon achieved for an Indian issuer in the dollar bond market in the 5-year tenor, said Rajiv Nayar,Head of Capital Markets Origination,Citi India.