Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  SBI raises $500 million from dollar bond issue
BackBack

SBI raises $500 million from dollar bond issue

SBI, whose 5-year bond issuance is coming after a gap of nearly a year, received bids worth $2.9 billion

This is the first dollar bond issuance by a domestic bank in 2017. Photo: Pradeep Gaur/MintPremium
This is the first dollar bond issuance by a domestic bank in 2017. Photo: Pradeep Gaur/Mint

New Delhi: State Bank of India (SBI) tapped the dollar bond market after a gap of nearly a year with a five-year issuance that raised $500 million on Tuesday.

The bank received bids worth $2.9 billion, according to a senior SBI official. The bond was priced at 145 basis points above the 5-year US Treasury, which is around 3.29%.

This is the first dollar bond issuance by a domestic bank in 2017. State-owned Bharat Petroleum Corp. Ltd’s Singapore unit issued $600 million of 10-year dollar bonds, Adani Ports & Special Economic Zone Ltd sold $500 million worth bonds earlier this year.

Rating agency Fitch Ltd has given a rating of BBB- for SBI’s issuance. According to Fitch, the bank’s core equity Tier 1 ratio is at 10.3% at the end of September. The bank is likely to receive around $835 million in new capital from the government shortly (of the total $1.1 billion earmarked for FY17; around 5% of FY16 equity) and has plans to raise an additional $2.2 billion directly from the market, for which it has received shareholder approvals.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 17 Jan 2017, 01:20 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App