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SBI gains after raising $500 million from overseas bond sale

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Capital Market
Last Updated : Jan 19 2017 | 12:01 AM IST

State Bank of India rose 0.57% to Rs 257.60 at 9:32 IST on BSE after the bank said it raised $500 million by selling five-year bonds to investors.

The announcement was made after market hours yesterday, 17 January 2017.

Meanwhile, the BSE Sensex was up 124.78 points, or 0.46%, to 27,360.44.

On the BSE, so far 80,000 shares were traded in the counter, compared with average daily volumes of 19.02 lakh shares in the past one quarter. The stock had hit a high of Rs 258.10 and a low of Rs 256.50 so far during the day.

The stock hit a 52-week high of Rs 288.50 on 11 November 2016. The stock hit a 52-week low of Rs 148.30 on 12 February 2016. The stock had underperformed the market over the past 30 days till 17 January 2017, falling 2.01% compared with the 3.26% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 0.53% as against Sensex's 2.68% decline.

The large-cap state-run bank has equity capital of Rs 776.28 crore. Face value per share is Re 1.

State Bank of India (SBI) said it concluded the issue of $500 million fixed rate senior unsecured notes having a maturity of 5 years at a coupon of 3.25% payable semi-annually under Regulation-S. The bonds will be issued through the bank's London branch as of 24 January 2017 and shall be listed on Singapore Stock Exchange.

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The bond was reportedly priced at 145 basis points above the 5-year US Treasury, which is around 3.29%.

SBI's net profit fell 34.6% to Rs 2538.32 crore on 8.3% growth in operating income to Rs 50742.99 crore in Q2 September 2016 over Q2 September 2015.

SBI is India's biggest bank in terms of branch network. The Government of India currently holds 60.18% stake in SBI (as per the shareholding pattern as on 31 December 2016).

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First Published: Jan 18 2017 | 9:26 AM IST

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