State Bank of India has raised $1 billion from an overseas-dollar denominated bond sale.
The five-year unsecured Notes--denominated in US dollars--will be issued by the London branch of SBI and carry a coupon of 3.25 per cent (US Treasury plus 255 basis points).
One basis point is one hundredth of a percentage point.
The initial guidance for the coupon was treasury plus 275 basis points, but the final price was tighter at treasury plus 255 basis points, sources in the merchant banking industry said.
The coupon on the latest bond sale is significantly lower than the coupon of treasury plus 375 basis points achieved for $1.25 billion raised by SBI in July last year through a five-year bond sale.
The latest SBI bond offering was subscribed 4.3 times, it is learnt.
SBI had hired five global giants including Citigroup, JP Morgan and HSBC to manage the debt sale.
Citigroup Global Markets has been book runner in each of the last three overseas bond sales of State Bank of India.
The latest bonds will be listed on the Singapore stock exchange and has a Baa2 rating from Moody's and BBB- by Standard & Poor's.
SBI had mopped up another $1 billion in July 2010 also.
India's largest commercial bank has a board mandate to raise $ 10 billion from abroad over the next few years.
Of this target, headroom available now is around $6 billion.