SBI raises $750 million through issuance of foreign currency bonds on India INX
1 min read 29 May 2023, 08:36 PM ISTSBI raised $750 million on India INX's Global Securities Market (GSM) through issuance of foreign currency bonds. The lender plans to expand its overseas business growth through the issue.
PremiumThe largest public sector lender, State Bank of India (SBI) listed $750 million worth of foreign currency bonds on Monday, This is part of SBI's $10 billion 'Global Medium Note' programme under which it will fund its overseas business growth. SBI's share price ended on a positive note today.
The $750 million funds were raised at platforms like India INX's Global Securities Market (GSM) and GIFT International Financial Services Centre in Gujarat.
These foreign currency bonds were issued by SBI through its London branch and were priced competitively.
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Dinesh Khara, Chairman, of SBI told ANI that the success of the issue highlights the strong investor base SBI has created for itself in the offshore capital markets. The issuance received huge participation from several marquee accounts across geographies resulting in the largest spread compression amongst all USD Indian bond issuances during the current year
He added, "the listing of the bond issue on INX Gift City emphasises our vision to make Gift City a hub for all international business opportunities including foreign currency fund-raising programs."
India International Exchange Limited (India Inx) is the country's first international stock exchange backed by Finance Ministry and government. It is also situated at the International Financial Services Centre, GIFT City.
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On BSE, SBI's share price closed at ₹594.95 apiece up by 1.55%. The stock closed near the intraday high of ₹596.30 apiece on Monday.
Last week, brokerage LKP Securities note said, "We expect the bank to post a ROA/ROE of 1%/15.5% by FY24E led by healthy balance sheet growth along with higher PCR and stable asset quality. We recommend the stock with BUY and target price of ₹743 (potential upside of 28%). We value the standalone bank with PBV of 1.3xFY25E Adj. BVPS of ₹459 and value of subsidiaries per share of ₹146."
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