SBI raises $500 m in three-year dollar debt

By: | Published: March 31, 2017 3:52 AM

State Bank of India (SBI) on Thursday raised $500 million as part of its $10 billion medium-term notes (MTN) programme, sources said, adding that 47% investors comprised banks, fund managers bought around 24% of the issue.

In January, SBI had raised 0 million through its London branch. (PTI)

State Bank of India (SBI) on Thursday raised $500 million as part of its $10 billion medium-term notes (MTN) programme, sources said, adding that 47% investors comprised banks, fund managers bought around 24% of the issue.

According to a banker, the securities were priced at three-month Libor plus 95 basis points (bps) and will mature in three years. “The issue was oversubscribed with over 70 participants. While Asian investors dominated the fund raising with 73% share, Europe and Middle east came in at 16% and 11% respectively,” the banker added.

While the money will be raised through its London branch, the bonds will be listed on the Singapore Stock Exchange. Rating agency Moody’s on Thurday assigned a ‘Baa3’ positive and said that the debt rating is anchored on SBI’s ba1 baseline credit assessment (BCA) and Moody’s assessment of the likelihood of a very high level of support from the government in a stressed situation.

You may also like to watch this video

In January, SBI had raised $500 million through its London branch and prior to that the bank had raised overseas debt by issuing $300 million worth of bonds in September 2016.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition