SBI eyes US$ 2-bn bond offering
The state-owned banking giant SBI is planning to raise up to US$ 2 billion in overseas borrowings through dollar-denominated bonds and has hired six investment banks, including Citigroup and UBS, for the issue.india Updated: Jul 04, 2012 01:59 IST
The state-owned banking giant State Bank of India (SBI) is planning to raise up to US$ 2 billion in overseas borrowings through dollar-denominated bonds and has hired six investment banks, including Citigroup and UBS, for the issue.
Enthused by the recent steps to stem the falling rupee value and measures to encourage foreign debt inflows into the country, SBI plans to hit the market with its bond offering within couple of weeks, investment bankers working on the deal said.SBI has hired six global giants — Citigroup, UBS, Barclays Bank, Deutsche Bank, Bank of America Merrill Lynch and JP Morgan — for the sale of dollar-denominated bonds, they added.
A successful bond offering by SBI could be followed by at least two other banks, ICICI Bank and Indian Overseas Bank, among other corporate entities, looking to raise funds through US dollar bonds, bankers noted.
The bankers are hopeful that SBI would be able to garner up to $2 billion through the bonds as the rupee is estimated to have hit its bottom against the dollar and any fall in the value of US currency from current levels would make it attractive to borrow at current exchange rates.