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

SBI: country’s largest lender State Bank of India has successfully garnered $600 million in bids for its five-year US dollar-deminated bond issue, according to a late Wednesday tice to stock exchanges. bank is set to pay a semi-annual coupon of 5.00 per cent, as indicated in tice.

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

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

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

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

(With Reuters inputs)