Indian banks raising international bonds at developed market rates

Both ICICI and SBI raise bonds at fine rates despite India's poor rating

Indian banks in the international markets are raising bonds at a finer rate than many financial institutions from other countries rated far superior than India, which has an international rating of BBB-, a notch above junk. 

ICICI Bank Ltd last week raised $300 million through 5.5 year bonds at equivalent maturity US treasury plus 155 basis points. The fixed rate coupon of the bond came at 3.25 per cent. 

State Bank of India (SBI), similarly, priced its bonds too at 3.25 per cent just before ICICI Bank’s issuance. 

These are superfine rates considering they come from a country with a