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SBI raises 4,700 cr from 4.5% bond issue in US

The country's largest public sector lender, State Bank of India, has raised $ 1 billion (about Rs 4,700 crore) through an issue of bonds to qualified institutional buyers.

india Updated: Jul 23, 2010 23:18 IST

The country's largest lender State Bank of India has raised $1 billion (about Rs 4,700 crore) through bonds from the US market.

Acting through its London branch, SBI issued the bonds at a coupon rate of 4.5 per cent per annum, similar to the yield on SBI's previous $750 million bond offering in October last year.

The successful completion of the issue, which was oversubscribed 4.8 times, shows strong fundamentals of the lender in terms of its credit profile and as the country’s largest bank, Chairman O.P. Bhatt said in a statement on Friday.

"This is a signature deal, despite market volatility. In terms of the deal size, order book size, attarcting new investors in the US, and number and quality of investors, we achieved our objectives with this issue."

"We believe the success of this transaction will allow Indian issuers to more easily access the US markets," Bhatt said.

First Published: Jul 23, 2010 11:15 IST