SBI to raise $500 m via bond issue
SBI should be able to raise the funds at a cheaper price this time, according to investment bankers. In July, 2012, the public sector lender had raised $1.25 billion from an overseas five-year dollar-denominated at 3.75% over US Treasuries to yield 4.125%. The issue was over-subscribed more than five times. Another public sector bank, Bank of India, is also in talks with investors to raise funds from the overseas market by March end, according to a bank executive, who did not want to be named.
In January 2013, five Indian companies raised a total of about $2.43 billion by issuing bonds in the overseas markets. Exim Bank mopped up $750 million through 10-year dollar bond at 4.119% and attracted subscriptions worth $6.4 billion. Billionaire Mukesh Ambani's Reliance Industries Limited raised $800 million through overseas perpetual bonds, or those without a set maturity at a coupon of 5.875%, the lowest ever interest rate for an debt raise of its kind.
The Netherlands unit of Tata Communications raised SGD250 million through a three-year Singapore dollar-denominated bond. It was the first Indian company to sell its issue overseas without any rating from agencies such
Be the first to comment.