State Bank of India has raised $1 billion through a debt sale programme in the global markets at a coupon rate of 3.25 per cent. The senior unsecured bonds, denominated in US dollars, have a tenure of five years.
At a time when the domestic interest rates are high, the fund raising by the nation's largest bank at low interest rates in the overseas markets may see other companies explore the global markets for funding.
The Reserve Bank of India has relaxed norms for Indian companies to tap the overseas route for fund raising at the time when the country is seeking inflows to plug its current account deficit.
"State Bank has successfully sold $1 billion senior unsecured bonds, denominated in US dollars and having a tenor of five years at a coupon of 3.25 per cent, to over 250 international investors," the nation's largest lender said in a statement.
This makes the current issuance cheapest/lowest in history not only for the bank but also for the domestic companies, the merchant bankers said.
The bonds will be issued through its London branch as of April 18, 2013 and shall be listed on Singapore Stock Exchange (SGX). (With PTI inputs)