India’s biggest lender — State Bank of India (SBI) — on Tuesday, September 9, announced the listing of its “Regulation S” bonds, worth $500 million, at NSE-IX in Gift City.
The bond issue, which concluded on September 2, carries a coupon rate of 4.50%. The company had then announced that the Reg S Bonds would be issued through its London branch and would be listed on the Singapore Stock Exchange and NSE-IX Exchange, GIFT City.
The bond is priced at a spread of 75 bps over the benchmark and is listed on SGX-ST and NSE-IX. The bond is benchmarked against the five-year US Treasury and has a rating of BBB and BBB- from S&P and Fitch, respectively.
The dollar bond issue had received an overwhelming response and saw strong interest from investors across geographies with a final order book in excess of $1.1 billion across 85 accounts, PTI reported, quoting SBI.
“On the back of strong demand with a peak order book of USD 2 billion, the price guidance was revised from T 105 bps area to T 75 bps. The Notes are expected to carry a final rating of BBB and BBB- from S&P and Fitch, respectively,” it added.
In November 2024, SBI raised $500 million through five-year dollar bonds at a yield of 5.13%, reported Reuters, which was at a spread of 82 bps over Treasury yield with similar maturity, the tightest spread achieved by the lender, per bankers.
Listing at NSE-IX to expand visibility: SBI MD
Commenting on the transaction, Shri Rama Mohan Rao Amara, Managing Director, SBI, said in a press release, “The successful issuance of USD 500 million is a testament to the strong appetite for bonds of SBI and reflects the confidence of the global investors in India’s growth story in general and credit quality of the Bank in particular.”
He added that the listing at NSE-IX enhances market visibility while reinforcing SBI’s commitment to support the vision of strengthening the GIFT City ecosystem as an evolving international financial hub.
Citigroup, HSBC, J.P. Morgan, MUFG, SMBC Nikko and Standard Chartered Bank were the joint book runners for this offering.
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