The bond is benchmarked against the 5yr US Treasury and priced at a spread of 82 bps over the benchmark. The bonds will be listed on SGX-ST and India INX.
FinTech BizNews Service
Mumbai, November 19, 2024: State Bank of India, acting through its London branch, has announced the conclusion of successful pricing of USD 500 million of “Regulation S” bonds at a coupon rate of 5.125 per cent. The bond is benchmarked against the 5yr US Treasury and priced at a spread of 82 bps over the benchmark. The bonds will be listed on SGX-ST and India INX.
The transaction received an overwhelming response and saw strong interest from investors across geographies with a final order book in excess of USD 1.70 billion across 125 accounts. On the back of strong demand with a peak orderbook of USD 2.8 billion, the price guidance was revised from T+115 bps area to T+82 bps. The Notes are expected to carry a final rating of Baa3 and BBB- from Moody’s and Fitch respectively.
Commenting on the transaction, Shri Challa Sreenivasulu Setty, Chairman, SBI, said “The successful issuance of USD 500 million is a testament to the strong appetite for bonds of SBI and to the diversified investor base the Bank has in offshore capital markets, allowing it to efficiently raise funds from the leading global fixed income investors. This is an indication of the confidence global investors have in the Indian banking sector generally, and in SBI in particular. ”
BNP PARIBAS, DBS, HSBC, J.P. Morgan, MUFG and Standard Chartered Bank were the Joint Bookrunners for this offering.
