India’s largest bank State Bank of India said it has raised $750 million via a 5-year bond issuance at a coupon rate of 4.875 per cent.
The bonds are benchmarked against a 5-year US treasury and priced at a spread of 145 basis points (bps) over the benchmark, the bank said in a statement. The bank raised the resources via its London branch.
The bonds were issued under SBI’s MTN (medium-term note) Programme and will be listed on Singapore SGX and the India INX, Gift City. The Notes are expected to carry a final rating of BBB- and BBB- from Standard & Poor’s and Fitch, respectively, per the statement.
The issuance received a good response, and saw strong interest from investors across geographies with a final order book in excess of USD 2.9 billion across 181 accounts.
“On the back of strong demand, the order booked peaked at USD 5.4 billion, making room for the guidance to be revised from T+185 area to T+145, which is the largest spread compression amongst all USD Indian bond issuances during current year,” the bank said.
Dinesh Khara, Chairman, SBI observed thatthe successful issue demonstrates global investors’ confidence in the Indian banking sector in general, and in SBI in particular, and it also attests to SBI’s unparalleled access to global capital markets.
Citigroup, Emirates NBD Capital, HSBC, J.P. Morgan, MUFG and Standard Chartered Bank acted as Joint Global Coordinators and Joint Lead Managers for this offering.