State Bank of India taps dollar bond market with five-year issue: Report

Synopsis

The State Bank of India is set to tap into the dollar debt market, aiming to raise a minimum of $500 million by issuing five-year bonds. Marketing for this public offering is underway, with expectations to finalize the sale within the week. This move follows a previous postponement of a larger issue due to escalating borrowing costs.

State ​Bank of ​India, the largest lender in the ​country, is tapping the dollar debt market through the public issue and plans ‌to raise ⁠funds ⁠through a sale of five-year bonds, ​two merchant bankers said on Tuesday.

SBI is ​likely to raise at least $500 million through the issue, with the final ​size dependent on ⁠investor demand. ‌The initial price guidance ​has been ​set at 120 basis ⁠points over U.S. Treasuries.

The lender has ​begun marketing the bonds and ​is expected to complete the sale before the end of the week, the bankers said, requesting anonymity as they are not ‌authorised to speak to media.

SBI had planned to raise $1 billion ​through ​a dollar ⁠bond sale in June but deferred the issuance after borrowing costs rose due to ​heavy supply from Indian lenders.

The lender did not immediately reply to a Reuters email seeking comment outside business hours.

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