Financial Daily from THE HINDU group of publications
Tuesday, Dec 07, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 07, 2004 |
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Money & Banking
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Overseas Borrowings SBI plans second overseas debt issue Our Bureau
Mr A.K. Purwar (right), Chairman, SBI, with Mr B.D. Sumitra, Deputy Managing Director (International Banking), at a press conference in Mumbai on Monday. — Paul Noronha
Mumbai , Dec. 6 STATE Bank of India plans to come out with the second phase of its overseas debt offering in a couple of months, according to Mr A.K. Purwar, Chairman, SBI. Earlier this month, SBI raised $400 million as a debut offering, which was part of its $1 billion (around Rs 4,500 crore) medium-term note programme, of bonds with tenure of five years listed in the Singapore stock exchange. The bonds were priced at 4.75 per cent and a yield of 4.847 per cent to investors. The initial size of the offering this month was $300 million which was upsized to $400 million, following excellent customer response, Mr Purwar said, addressing a press conference here on Monday. This is the largest issue size by any Indian entity. The investor interest has been widespread through geographical distribution with 41 per cent of demand coming from Europe, 50 per cent, from Asia and 9 per cent from offshore US accounts, said bank officials. SBI is raising the funds to finance its overseas operations. The bank also plans to acquire a medium-sized bank abroad in a couple of months. Commenting on the domestic interest rates scenario, Mr Purwar said, that there was still some upward pressure on lending rates due to high inflation in the economy, even if the rates are somewhat stable at the moment. Responding to queries on whether SBI has any immediate plans to hike its prime-lending rate, Mr Purwar said, "SBI is comfortable with its PLR at present".
More Stories on : Overseas Borrowings | Corporate Bonds | Public Sector Banks
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