The Hindu Business Line : SBI raises $250 m

Citigroup, BNP Paribas and Calyon were the mandated lead arrangers. A total of 12 banks from 8 countries form the syndicate of lenders, said a press release from Citigroup.

While pricing details were not given in the release, market sources said the loan was very finely priced at 0.32 per cent over Libor, which is at 2.10 per cent. The bank has raised the funds just ahead of expected hardening of Libor and is likely to utilise the money for foreign currency lending purposes particularly for export finance.

Recently, Bank of India had raised $100 million at 0.40 per cent above Libor while Union Bank of India and Punjab National Bank had also tapped the foreign currency market.

"This is the largest borrowing by any bank in the recent past and has been priced very finely to set a new benchmark for State Bank of India. This transaction is reflective of SBI's pre-eminent position, strong financials, and growth prospects," said Mr Sanjay Nayar, CEO - Citigroup India.

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