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Updated January 11th, 2024 at 08:42 IST

State Bank of India accepts $600 million bids for 5-year dollar bonds

The bank witnessed an overwhelming response with bids exceeding $3.5 billion, resulting in a coupon at a spread of 117 bps over the 5-year US Treasury yield.

Reported by: Business Desk
SBI new FD interest rates
SBI | Image:ANI
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SBI: The country’s largest lender State Bank of India has successfully garnered $600 million in bids for its five-year US dollar-denominated bond issue, according to a late Wednesday notice to stock exchanges. The bank is set to pay a semi-annual coupon of 5.00 per cent, as indicated in the notice.

The bank witnessed an overwhelming response with bids exceeding $3.5 billion, resulting in a coupon at a spread of 117 basis points over the five-year US Treasury yield. The initial pricing guidance, reported by Reuters earlier in the week, had set the spread at 150 basis points over the same US yield.

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Bank of America, BNP Paribas, HSBC, JP Morgan, MUFG, and Standard Chartered Bank were appointed as joint lead managers for the issue, as reported by Reuters on Wednesday.

The settlement for the bond issue is scheduled for January 17, and the generated funds will be allocated for general corporate purposes and to meet the funding requirements of SBI's foreign offices/branches, according to the term sheet.

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State Bank of India shares ended 0.59 per cent lower at Rs 621.70 on Wednesday.

(With Reuters inputs)

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Published January 11th, 2024 at 08:36 IST

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