New Delhi: On Thursday, the State Bank of India announced that it had successfully raised $750 million through the issuance of 5-year Regulation S (Reg S) bonds. These bonds were issued at a coupon rate of 4.875 per cent and benchmarked against 5-year US treasury bonds. The bonds were priced at a spread of 145 basis points (bps) over the benchmark. This bond issuance is the largest US dollar 5-year Reg S bond issuance by an Asian issuer in 2023.
According to SBI Chairman Dinesh Khara, the successful issuance of the bonds is a testament to SBI’s strong investor base in offshore capital markets. This investor base enables SBI to effectively raise funds from the world’s leading fixed-income investors, especially during moments of increased volatility and uncertainty.
The issuance of the bonds received a great deal of interest from investors across geographies, with a final order book in excess of $2.9 billion across 181 accounts. Due to the strong demand, the order book peaked at $5.4 billion, allowing for the guidance to be revised from the T+185 area to T+145.
Under SBI’s MTN (medium-term note) programme the bonds were issued and will be listed on the India INX, Gift City, and Singapore SGX, according to SBI.
In summary, the State Bank of India has successfully raised $750 million through the issuance of 5-year Regulation S (Reg S) bonds. This bond issuance is the largest US dollar 5-year Reg S bond issuance by an Asian issuer in 2023. The bonds were priced at a spread of 145 basis points (bps) over the benchmark and received strong interest from investors across geographies.
