SBI may defer $1.5-billion foreign bond sales plan

State Bank of India (SBI) may delay $1.5 billion overseas bond issuance programme due to volatility in <g data-gr-id="21">foreign</g> market as a result of Greek debt crisis. “There is volatility in the global market due to Greek issue. No one would venture till stability returns,” a senior SBI official said.

The bank was in <g data-gr-id="32">process</g> of holding roadshows for the issuance of <g data-gr-id="33">overseas</g> bond. Last year in April, the bank mopped up $1.25 billion from overseas debt sale through a dual tranche bond programme, making it the largest-ever offering from a domestic <g data-gr-id="22">issuer</g>. The bank raised $750 million with 5-year tenure at US treasury interest rate plus 205 basis points, while it priced the 10-year $500 million issue at 225 basis points over the treasury. 

The investor breakdown by regions stood at 53 <g data-gr-id="25">per cent</g> non-resident US investors; 24 <g data-gr-id="26">per cent</g> from Asia; and 23 <g data-gr-id="27">per cent</g> from Europe for the 5-year Reg S issue, while the investor type were 70 <g data-gr-id="28">per cent</g> asset managers/fund houses; 15 <g data-gr-id="29">per cent</g> banks; nine <g data-gr-id="30">per cent</g> private banks and six per cent insurance and others.

With regard to the 10-year tranche, of the 290 accounts, 40 <g data-gr-id="15">per cent</g> came from the non-resident US investors, 33 <g data-gr-id="16">per cent</g> from Europe and the rest 27 <g data-gr-id="17">per cent</g> from Asia. The investors included 50 <g data-gr-id="18">per cent</g> asset managers/fund houses, 30 <g data-gr-id="19">per cent</g> banks and the remaining 20 <g data-gr-id="20">per cent</g> insurers, corporates and others.