The much awaited overseas bond issue of State Bank of India (SBI) is complete. CNBC-TV18’s Gopika Gopukumar learns that the bank has raised USD 750 million through this issue.
It was a much awaited and much looked at bond issuance. SBI has successfully raised around USD 750 million through five year overseas bonds. Now, these bonds are called medium-term notes and these are largely raised in the overseas market.
We understand that SBI has priced this five-year bond issuance at mid-swap plus 190 bps. Now, this mid-swap is an equivalent of London Inter bank Offered Rate (LIBOR) and is largely for a longer tenure maturing bond.
SBI also has received orders worth around USD 3.3 million out of which they have decided to retain only USD 750 million. We understand that SBI will be using these funds for their overseas operations largely for lending activities. There have been five bankers who have been part of this bond issuance and these include JP Morgan, Deutsche Bank, Citigroup, HSBC, and Barclays Capital. We also understand that private banks, hedge funds, mutual funds have been part of or have subscribed to this bond issuance.
Source: Moneycontrol.com
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