[sbinews] Tightly priced bond issue from SBI (Financial Times, London)
- From: "Rajendra S. Pai" <rs.pai@xxxxxxxxx>
- To: <sbinews@xxxxxxxxxxxxx>
- Date: Tue, 7 Dec 2004 11:11:13 +0530
NOTE: SBINEWS DOES NOT PERMIT CIRCULATION OF ATTACHMENTS. ATTACHMENTS, IF ANY,
CIRCULATED WILL BE ONLY BECAUSE OF VIRUSES. PLEASE,THEREFORE, IGNORE
ATTACHMENTS IF ANY IN SBINEWS MESSAGES
************************************************************************
Tightly priced bond issue from SBI
(Financial Times, London)
By Khozem Merchant in Mumbai
Published: December 6 2004 20:13 | Last updated: December 6 2004 21:47
State Bank of India has unveiled a $1bn bond issuance programme designed to
support the global business ambitions of India's largest banking group.
The fundraising comes amid increasing signs of a stronger perception of
Indian credit as companies from the country tap international capital
markets to fund their overseas expansion.
The first tranche under SBI's medium-term notes programme was a $400m
fixed-rate international bond, the largest ever from India. Bankers and SBI
officials described the five-year bond as a "landmark" because of its tight
pricing, which was one basis point higher than the government of India would
achieve with its sovereign rating. Moody's Investors Service, rates India at
the lowest investment grade of Baa3.
The offering was aimed at offshore US accounts and investors in Europe and
Asia, and was subscribed more than three times, persuading the bank to
increase the size by $100m.
The bonds were priced to yield 117.5bp over five-year US Treasuries, more
favourable by about 16bp than that achieved by the most recent Indian
international benchmark, a $250m offering this year by Export-Import Bank.
"Our strong balance sheet has been noticed by global investors and we have
been rewarded with fine pricing," said Mr AK Purwar, chairman of SBI.
State-owned SBI, which accounts for about 80 per cent of India's
public-sector banking assets, plans another issue of similar size within two
months, when it hopes also to have completed the acquisition of a
medium-sized bank in an emerging market, said Mr Purwar.
SBI's international assets of $10bn are forecast to grow by at least a
quarter this year, he said.
----------------------------------------------------------------------
This message is intended only for the use of the Addressee and may contain
information that is PRIVILEGED and CONFIDENTIAL. If you are not the intended
recipient, please erase all copies of the message and its attachments. Any
unauthorized access, usage, reproduction, disclosure of the contents of the
mail and its attachments, without the explicit permission of the Bank is
prohibited and State Bank Of India (SBI) or any of its officials, including the
sender of this mail, would not in any way be liable for the same. SBI accepts
no liability for any damage caused by this e-mail.
----------------------------------------------------------------------
Email From ""Rajendra S. Pai" <rs.pai@xxxxxxxxx>" was security checked by 3.93
version of CxProtect(tm)
On: sify_mta at: 12:07:55, 07-Dec-2004 Tuesday
----------------------------------------------------------------------
***************************************************************************
Mailing list (sbinews@xxxxxxxxxxxxx) related information:
News/articles about SBI and Banking related matters published in the print
media, Internet etc will be circulated through this Mailing List.
The messages in this list will help in improving awareness of SBI and its
activities vis-a-vis the happenings in the Banking industry. This should be of
help to all staff members of SBI, particularly those who are preparing for
promotional written tests/interviews/group discussions. Subscription to this
Mailing List is simple and FREE. Please check the procedure below. Please share
this information with other colleagues/branches that could be interested in
subscribing to this Mailing List.
The messages circulated here should not be deemed to have the official
endorsement of the SBI or any of its employees. The correct factual position
may be ascertained from official sources.
To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx
with the word 'subscribe' without the quotes in the subject of the email
message.
To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx
with the word 'unsubscribe' without the quotes in the subject of the email
message.
Archives (old messages) are available for viewing at:
//www.freelists.org/archives/sbinews
Click on the month-year at the lower left corner to view messages posted during
that month.
This is an announcements/newsletter type mailing list i.e. only the Moderator/s
can post messages to the list.
This mailing list is maintained and moderated by Sri. R.S.Pai, currently
working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai.
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities
Links
Other related posts:
- » [sbinews] Tightly priced bond issue from SBI (Financial Times, London)
