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SBI sees strong demand for 5-year dollar bond, tightens pricing
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SBI raised $500 million through a five-year dollar bond issued via its London branch, the lender said in a stock exchange filing late on Tuesday.
These bonds will be priced at a spread of 88 basis points over US Treasuries, sharply below initial guidance of 120 bps.
The final spread was broadly in line with CreditSights’ expectation of 90 basis points, although the research firm expects it to tighten further to around 80 basis points in the secondary market.
The lender witnessed tightest pricing, after ICICI Bank sold notes at 100 bps, while HDFC Bank sold notes at a spread of 90 bps over Treasuries.
Large private lenders, including HDFC Bank, Axis Bank and ICICI Bank have raised funds through dollar bonds in June and July.