SBI Raises $1 Bn From Overseas Market Through Bond Issue
SBI has raised $1 Bn (about Rs.4,700 Cr) through QIP bond issue from overseas market.
SBI, through its London branch raised the funds by pricing the bond at a coupon rate of 4.5% p.a.
In terms of allocations, US-based investors received 55%, Asian investors received 28% while European investors were allocated balance 17%.
In term of investor type, asset and fund managers subscribed for 63% of the deal, commercial and investment banks subscribed for 9%, private banks subscribed for 15% and insurance/pension funds subscribed for 4%.
Transaction Reference: BS
SBI rececntly got the government approval to merge State Bank of Indore with itself.
SBI is also planning to come out with a retail bond issue of about Rs.200 Cr in few monnths. The issue is targeted at its retail clients and will be used as Tier-II capital. These retail bonds will have a duration of 15 years, with a call option for 10 years, or a duration of 10 years, with a call option of five years.
It is also seeking approval from the government to raise Rs.15,000-20,000 Cr through a rights issue. The issue is expected to happen this financial year.
SBI is also exploring the listing of its life insurance business, SBI Life.
SBI recently formed a JV with State General Reserve Fund (SGRF) of Sultanate of Oman to set up a PE fund to invests in various assets in India. The fund will have an initial corpus of $100 Mn and would be expanded to $1.5 Bn in future.
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KVEZAR VIEW
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 08/02/12 | Private Equity | ICICI Bank Limited | - | Completed | |
| 08/02/12 | Private Equity | Verlinvest SA | Cuisine Asia | - | Completed |
| 07/02/12 | M&A | Piramal Healthcare Limited | Looking For | - | Planned |
| 07/02/12 | Private Equity | Life Insurance Corporation of India | Dena Bank | 25.49 | Announced |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| State Bank of India | The President of India | Corporate Centre, Madam Cama Road |
Bank Of Baroda Punjab National Bank Union Bank Of India ICICI Bank Limited Axis Bank Limited HDFC Bank Limited IDBI Bank Limited Dhanlaxmi Bank Limited Indian Overseas Bank Kotak Mahindra Bank Limited Indian Bank City Union Bank Limited Yes Bank Limited |
www.statebankofindia.com |
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