Informist, Wednesday, Jan 11, 2023

--Sources: SBI plans up to 100-bln-rupee, 10-year infra bond issue

By Subhana Shaikh

MUMBAI – State Bank of India, the country's largest lender, plans to hit the debt market next week with infrastructure bonds maturing in 10 years, sources told Informist. The state-owned bank plans to raise up to 100 bln rupees – a base issue of 50 bln rupees and a greenshoe option of another 50 bln rupees.

"The issue is most likely to be launched on Jan 16 or Jan 17 and accordingly, bidding for this issuance might be on Jan 18 or Jan 19," a source aware of the development told Informist.

The bonds are rated 'AAA' by India Ratings.

Earlier this month, the bank had sought board approval for the sale of infrastructure bonds up to 100 bln rupees this financial year.

Market participants expect the coupon on SBI's infrastructure bonds to be in the range of 7.55-7.65%.

"It's difficult to get the levels that SBI got last time on its infrastructure bonds, but it's likely to be 10-15 basis points higher than last time's issue," the source said.    

Last month, the public sector bank had raised 100 bln rupees through 10-year infrastructure bonds at a coupon of 7.51%, payable annually. The issue was fully subscribed.

According to merchant bankers, the state-owned bank is likely to issue another batch of tier-I bonds by next month. So far, SBI has raised 68.72 bln rupees through Basel III-compliant tier-I bonds.

On Dec 14, the board of the bank had approved raising up to 100 bln rupees through Basel-III compliant additional tier-I bonds by 2023-24 (Apr-Mar).

The bank had also raised 40 bln rupees through Basel-III-compliant tier-II bonds maturing in 15 years this financial year.

Today, shares of SBI closed 0.3% higher at 596.70 rupees on the National Stock Exchange.  End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

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© Informist Media Pvt. Ltd. 2023. All rights reserved.

Informist, Wednesday, Jan 11, 2023

--Sources: SBI plans up to 100-bln-rupee, 10-year infra bond issue

By Subhana Shaikh

MUMBAI – State Bank of India, the country's largest lender, plans to hit the debt market next week with infrastructure bonds maturing in 10 years, sources told Informist. The state-owned bank plans to raise up to 100 bln rupees – a base issue of 50 bln rupees and a greenshoe option of another 50 bln rupees.

"The issue is most likely to be launched on Jan 16 or Jan 17 and accordingly, bidding for this issuance might be on Jan 18 or Jan 19," a source aware of the development told Informist.

The bonds are rated 'AAA' by India Ratings.

Earlier this month, the bank had sought board approval for the sale of infrastructure bonds up to 100 bln rupees this financial year.

Market participants expect the coupon on SBI's infrastructure bonds to be in the range of 7.55-7.65%.

"It's difficult to get the levels that SBI got last time on its infrastructure bonds, but it's likely to be 10-15 basis points higher than last time's issue," the source said.    

Last month, the public sector bank had raised 100 bln rupees through 10-year infrastructure bonds at a coupon of 7.51%, payable annually. The issue was fully subscribed.

According to merchant bankers, the state-owned bank is likely to issue another batch of tier-I bonds by next month. So far, SBI has raised 68.72 bln rupees through Basel III-compliant tier-I bonds.

On Dec 14, the board of the bank had approved raising up to 100 bln rupees through Basel-III compliant additional tier-I bonds by 2023-24 (Apr-Mar).

The bank had also raised 40 bln rupees through Basel-III-compliant tier-II bonds maturing in 15 years this financial year.

Today, shares of SBI closed 0.3% higher at 596.70 rupees on the National Stock Exchange.  End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.