India’s state-owned lender State Bank Of India (SBI) plans to raise $2bn by issuing long-term offshore bonds in the current financial year 2022-23. The bond issuance could be under a single deal or multiple tranches through a public offer or private placement of senior unsecured notes in USD or any other convertible currency. The executive committee of the Central Board of the bank is scheduled to have a meeting on May 10, 2022 to consider fundraising. SBI is the largest lender in India having advances of INR 26.64trn ($350bn), total deposits of INR 38.47trn ($510bn), and a net interest margin (NIM) of 3.11% as of December 2021. In January 2022, the bank raised $300mn via a 5Y Formosa bond at a yield of 2.496%. In August last year, its Indian private peer HDFC Bank raised $1bn via a PerpNC5 AT1, its debut dollar issuance, at a yield of 3.7%. In September 2021, another Indian lender, Axis Bank issued $600mn via sustainable perpetual bonds at a yield of 4.1%.
SBI’s existing dollar bonds were trading higher with its 4.875% 2024s up over 0.36 points to 102.18 yielding 3.70%.
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