SBI to raise $600 m via bonds by July

State Bank of India (SBI), the country's largest bank, plans to raise the remaining $600 million of its $1 billion overseas borrowing programme in June or July to finance its international expansion.

SBI raised $400 million in December through issue of five-year mediun-term notes at 117.5 basis points over corresponding US treasuries.

SBI chairman A K Purwar said the bank wants to raise the balance funds fast as its overseas balance sheet is "expanding well".

The bank is in the process of appointing arrangers to manage the issue, It earlier float was managed by Citigroup, HSBC and Deutsche Bank.

The bank has also received permissions from Indian authorities for establishing a branch in Israel, but is awaiting approval from the Israel government, Purwar said on the sidelines of a conference on diamond.

SBI acquired a 51 per cent stake for $8 million in Mauritius-based Indian Ocean International Bank in February 2005. It has plans to acquire two more banks in Asia and Africa to expand its overseas operations.

SBI, owned 59 percent by the central bank, has some 9,000 branches across India and about 200,000 employees.