SBI raises $300 million via Formosa bonds

State Bank of India, acting through its London branch has raised US$300 million “Regulation S” Formosa bonds at a coupon rate of 2.49%, the bank said in a statement.

The bond is benchmarked against the 5 years U.S. Treasury and priced at a spread of 100bps over the benchmark.

The bonds will be listed on Taipei Exchange (TPEx), Singapore Exchange Securities Trading Ltd. (SGX-ST) and India International Exchange IFSC Ltd (India INX).

“The transaction received an overwhelming response and saw strong interest from investors across geographies. A wide range of investors such as supranational agencies, assets managers, private bankers and financial institutions have invested in the issue On the back of strong demand, the price guidance was revised from T+130bps area to T+100 bps,” the bank said.

Ashwini Kumar Tewari, MD said “This is an indication of confidence global investors have in the Indian banking sector generally, and in SBI in particular and is also testament to the exceptional access that SBI enjoys in the global capital markets.”

Source: Read Full Article