State Bank of India (SBI) has raised $300 million through “Regulation S” Formosa Bonds for five years at a coupon rate of 2.49%, the lender has said in a release.
The bonds have been benchmarked against five-year US Treasury notes and priced at a spread of 100 basis points over the benchmark. The lender has completed its issuance through its London branch.
The first-ever public Formosa USD bonds issued by an Indian scheduled commercial bank have received strong demand from investors, which helped SBI tighten pricing by 30 basis points. The initial guidance was T+130 basis points area and heavy demand lead to finalizing pricing at T+100 basis points.
“This is an indication of confidence global investors have in the Indian banking sector generally, and in SBI in particular and is also a testament to the exceptional access that SBI enjoys in the global capital markets,” Ashwini Kumar Tewari, managing director, SBI, said.
Formosa bonds have received strong investment from various investors, including supranational agencies, assets managers, private bankers and financial institutions. The bonds will be listed on Taipei Exchange (TPEx), Singapore Exchange Securities Trading (“SGX-ST”) and India International Exchange IFSC (“India INX”).
Citigroup, HSBC, Credit Agricole and Standard Chartered Bank were the Joint Bookrunners for this offering and KGI Securities Taipei, SinoPac Securities Corporation Taipai, Taishin International Bank, Taipei, acted as co-managers for the issue, the release said.