SBI Raises $500 Million Through Five-Year Bonds from International Investors
| Aspect | Details |
|---|---|
| Amount Raised | $500 million |
| Type of Bond | Five-year bonds issued through SBI's London branch |
| Investor Demand | Order book close to $3 billion (oversubscribed multiple times) |
| Pricing | 82 basis points (bps) over the US Treasury |
| Initial Pricing Guidance | 115 bps over the US Treasury |
| Compression Achieved | 33 bps |
| Utilization of Funds | - General corporate purposes - Funding requirements of foreign offices/branches |
| Comparative Issuance (January 2024) | $600 million raised at 117 bps over US Treasury |
| Domestic Fundraising | - ₹10,000 crore raised through 15-year infra bonds at 7.23% - ₹20,000 crore raised in FY25 |
| Advantages of Infra Bonds | - Exempt from CRR (4.5%) and SLR (18%) requirements - Fully deployable for lending activities |
| Other Public Sector Bond Issuances | - REC: ₹3,000 crore (7.09%) - IRFC: ₹1,415 crore (7.14%) |
| SBI's Future Plans | Raise ₹20,000 crore through long-term bonds in FY25 (public issue or private placement) |
| Investor Confidence | Demonstrated by tight pricing and high subscription levels |