SBI raises $300 million under RBI's ECB swap window
State Bank of India has successfully raised $300 million by issuing three-year senior unsecured floating-rate bonds in overseas markets. This move comes after the Reserve Bank of India introduced measures to reduce the cost of foreign-currency bor...
By ET Bureau |
Agencies
Mumbai: SBI has tapped overseas debt markets after the central bank introduced measures to lower the cost of foreign-currency borrowings, raising $300 million through a three-year senior unsecured floating-rate bond issue.
The fundraising follows the June 5 Reserve Bank of India (RBI) announcement allowing certain public sector undertakings and infrastructure firms to hedge external commercial borrowings (ECBs) through a concessional foreign exchange swap facility at a fixed annual rate of 1.5%. SBI said on Monday it had concluded the issuance of Regulation-S senior unsecured floating-rate notes through its London branch.
The bonds, due in three years, carry a coupon of the Secured Overnight Financing Rate plus 100 basis points, with interest payable quarterly.
The fundraising follows the June 5 Reserve Bank of India (RBI) announcement allowing certain public sector undertakings and infrastructure firms to hedge external commercial borrowings (ECBs) through a concessional foreign exchange swap facility at a fixed annual rate of 1.5%. SBI said on Monday it had concluded the issuance of Regulation-S senior unsecured floating-rate notes through its London branch.
The bonds, due in three years, carry a coupon of the Secured Overnight Financing Rate plus 100 basis points, with interest payable quarterly.
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