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

On Wednesday, Reuters had reported that SBI appointed Bank of America, BNP Paribas, HSBC, JP Morgan, MUFG and Standard Chartered Bank as the joint lead managers for the issue.

State Bank of India has accepted bids worth $600 million for its five-year U.S. dollar-denominated bond issue, the lender said in a notice to stock exchanges late on Wednesday.

The nation’s largest bank will pay a semi-annual coupon of 5.00%, the notice showed.

SBI received bids worth over $3.5 billion and the coupon is at a spread of 117 basis points over the five-year U.S. Treasury yield.

On Wednesday, Reuters had reported that SBI appointed Bank of America, BNP Paribas, HSBC, JP Morgan, MUFG and Standard Chartered Bank as the joint lead managers for the issue.

The initial price guidance was set at a spread of 150 basis points over the five-year U.S. yield.

The issue will settle on Jan. 17, and the proceeds will be used for general corporate purposes and to meet the funding requirement of SBI’s foreign offices/branches, the term sheet showed.

Earlier this month, SBI raised $1 billion through a syndicated loan.

Source:financialexpress.com

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