MUMBAI: State Bank of India (SBI) said it would raise $2 billion as part of its fund-raising plans. SBI’s board approved the proposal at its meeting held here on Monday to raise capital by issuing bonds in US dollar or other convertible currency.
“The executive committee of the Central Board has approved long-term fund-raising in single/multiple tranches up to $2 billion,” SBI said in a disclosure with the bourses.
It added that the fund-raising will take place through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during 2017-18 and 2018-19. The proposed foreign currency bonds could be issued in a single or multiple tranches.
Last year saw a surge in foreign currency bond issuances with Indian firms and banks issuing approximately $16.4 billion worth debt.
It may be noted that in calendar year 2017, the country’s largest lender via its London branch issued two foreign currency bonds.
According to SBI’s exchange filing last week, it did a tap issue of its existing floating rate bonds in April to raise $100 million, taking the total size of the issue to $600 million.
The bank priced the three-year paper at a coupon of 95 bps plus the three-month USD Libor payable quarterly.
Prior to that, the London branch issued five-year dollar bonds in January to raise $500 million at a coupon rate of 3.25 per cent payable semi-annually.