SBI seeks $500 million through issuance of dollar bonds
According to the sources, the biggest financial institution in the country, State Bank of India (SBI) is anticipated to begin discussions with investment banks next week regarding a proposed offering. The size of the offering may be increased based on investor interest. The offering is expected to be arranged by banks from Europe, Japan, and the United States.
SBI seeks $500 million through dollar bonds: Key Points
- SBI has initiated initial discussions with overseas banks to obtain roughly $500 million by releasing bonds in US dollars, complying with regulations under Reg S/144 A.
- The objective behind this action is to gather funds and monitor the upcoming FOMC meeting planned for the first week of May.
- Next week, SBI is anticipated to initiate communication and interaction with investment banks to raise $500 million through a global bond issuance.
- The extent of this fundraising could potentially increase, contingent on the response received from investors.
- SBI is expected to contact significant banks from Europe, Japan, and the United States.
- According to the report, the borrowing rate of the State Bank of India (SBI) is anticipated to be similar to other banks operating in the same field.
- The report suggests that SBI’s pricing is expected to be based on the rates offered by Kookmin Bank of South Korea. Kookmin Bank recently raised a five-year bond at a rate of 95 basis points (bps) above the five-year US treasury rate.
- The report also states that SBI currently has bonds worth $600 million that will mature in September 2023 and bonds worth $800 million that will mature in early 2024.
State Bank Of India (SBI): Important Takeaways
- State Bank of India (SBI) is the largest public sector bank in India and has a wide network of branches and ATMs throughout the country.
- SBI was established in 1955 and is headquartered in Mumbai, India. It has a history of more than 200 years, having evolved from the Bank of Calcutta, which was established in 1806.
- Chairman of SBI: Dinesh Kumar Khara