SBI raises $500 million via overseas bond issue at record-low spread

Investor interest was strong, with the order book exceeding $1.1 billion from 85 accounts, peaking at nearly $2 billion. This allowed SBI to tighten pricing guidance significantly from 105 basis points to 75 basis points. The issue is expected to be rated BBB by S&P and BBB- by Fitch, according to the lender.

The bonds will be listed on the Singapore Exchange (SGX-ST) and NSE International Exchange (NSE-IX). Citigroup, HSBC, J P Morgan, MUFG, SMBC Nikko, and Standard Chartered acted as joint bookrunners for the offering.In July, SBI completed a Qualified Institutional Placement (QIP) of equity shares, raising ₹25,000 crore—marking the largest QIP ever in the Indian capital markets. The majority of the shares, as part of its QIP, were issued to India’s largest insurance company

Life Insurance Corporation of India Ltd.

Also read: Record state borrowing spree pushes Indian bond yields higher

Q1 performance

For the June quarter, India’s largest lender posted higher profitability on a year-on-year basis, but its core income was below expectations.

SBI reported a net profit of ₹19,160 crore, which is 15% higher than the same quarter last year. However, the Net Interest Income (NII) or core income for the quarter remained flat at ₹41,072.4, which is nearly the same as the previous year’s figure of ₹41,126 crore.

Shares of SBI are trading in green at ₹808.45, up ₹4.5 or 0.5% on the BSE.