SBI raises $500 million from overseas bond sale

The State Bank of India (SBI) on Tuesday raised $500 million through an international bond sale of five-year bonds at coupon of 3.306 per cent per annum. “The pricing offers a spread of 145 basis points over the five-year US treasury, which is equivalent to a price of 99.744 per cent yielding 3.306 per cent per annum,” SBI said in a note after closing the issue through its London branch.
 
The order book came in at $1.5 billion for an offer of $500 million, SBI said, adding the issue has been rated at investment grade by all the three big rating agencies. The offering, which will be listed on the Singapore Stock Exchange, will bear fixed interest of 3.25 per cent per annum with interest payable semi-annually in arrears. The bonds will mature on January 24, 2022, the bank said, adding the just-concluded bond sale is part of its $10-billion medium-term note programme.