State Bank of India on Thursday successfully raised $1.25 billion from an overseas
dollar-denominated bond sale , making it the single largest issue from the domestic banking in recent years.
It was over-subscribed 5.2 times.
At 3.75 per cent over the US treasury bills, the SBI issue is the cheapest five-year offering by a domestic company till date with the effective coupon rate, payable half-yearly, working out to be just 4.125 per cent, according to Citi India, one of the lead bankers to the bond sale.
The fact the issue was snapped up below the bank's own indicative rate of 400 basis points above the treasuries in run-up to the sale, shows the investor interest in the issue.
"We have just finished a successful bond sale issue, mopping up $1.25 billion at 3.75 per cent over the US treasury rate," SBI Managing Director and Group Executive for International Banking Hemant Contractor said.
In November 2010, ICICI Bank had raised USD 1 billion from bond sale. SBI, too, had mopped up a similar amount in July 2010.
While ICICI's was a 10-year issue, making it the longest tenure, SBI's was a five-year money.
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