State Bank of India today launched an international five-year bond sale programme to raise at least $one billion.
When contacted, SBI Managing Director and Group Executive for International Banking Hemant Contractor told PTI that the bank today launched its benchmark bond sale through book-building route.
"The issue is open and the details like pricing and the quantum of funds being mobilised will be known only by late night," Contractor said.
A benchmark bond issue typically aims to raise more than $500 million.
According to sources, the bond issue is of over $1 billion size with a five-year tenure.
The issue's investment bankers include Bank of America Merrill Lynch, Barclays Capital, Citigroup, Deutsche Bank, JP Morgan and UBS.
SBI launched a marketing campaign for its benchmark bond issue on July 16 in Hong Kong, Singapore, London, New York, Los Angeles, Boston, Frankfurt and Zurich.
The bank has a board mandate to raise $10 billion from overseas markets over the next few years, and it has a headroom to raise nearly $7 billion more since it has raised $4 billion.
The senior notes offering, which has been rated as 'BBB-' by Standard & Poor's, is a dollar-denominated issue.
Giving the 'BBB-' rating on the SBI bond sale, S&P had earlier said this reflects the long-term counterparty credit rating on the bank.
"The proposed notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of SBI," S&P said.
SBI's move to raise overseas funds comes in the wake of the recent RBI steps to stem the falling rupee value and measures to encourage foreign debt inflows.
