The successful issuance, according to State Bank of India (SBI) Chairman Dinesh Khara, illustrates the bank’s substantial investor base in international capital markets.
The largest lender in the nation, State Bank of India (SBI), has raised USD 750 million through bonds to support the expansion of overseas businesses.
According to a filing, SBI has completed the issuance of USD 750 million in senior unsecured fixed rate notes with a maturity of five years and a coupon of 4.875 percent payable every two years under Regulation-S.
As of May 5, 2023, “the bonds will be issued through our London branch and shall be listed on Singapore Stock Exchange and India International Exchange, GIFT City,” it stated.
Investors from all over the world showed great interest in the offering, and the total order book exceeded USD 2.9 billion over 181 accounts. Strong demand caused the order volume to reach a peak of USD 5.4 billion, which allowed the guidance to be revised from the T+185 area to the T+145 area. The successful issue is evidence of the solid investor base that SBI has built for itself in the offshore capital markets, which has enabled it to effectively raise money from the top fixed-income investors in the world, even during times of increased volatility.
“The successful offering demonstrates SBI’s robust investor base in offshore capital markets, which enables it to successfully raise funds from the top fixed-income investors globally, particularly during periods of elevated volatility and uncertainty. This illustrates the confidence that foreign investors have in the Indian banking industry as a whole and in SBI specifically, and it also attests to SBI’s unmatched access to the world’s capital markets, according to SBI Chairman Dinesh Khara.
The bank’s board had earlier this month approved a plan to issue USD 2 billion (around 16,000 crores) in bonds to finance its international activities.
The largest commercial bank in terms of assets, deposits, branches, clients, and staff is State Bank of India.
