State Bank of India to raise $ 300 million via bonds

NEW DELHI: Country's largest lender SBI has decided to raise $ 300 million by way of issuing bonds and the proceeds would be used for general corporate purposes.

"State Bank of India (SBI) has decided to issue bond under reverse enquiry up to $ 300 million...through issuance of senior unsecured fixed notes," the bank said in a BSE filing.

The bonds will carry an interest rate of 3.95 per cent per annum, that will be paid semi-annually.

The bonds are expected to be rated Baa3--the lowest rating of investment, carrying moderate risk--by ratings firm Moody's or BBB--the lowest investment grade--by S&P, it added.

The issuer of the bonds will be the London branch of SBI and the bank plans to list the notes on SIX Swiss Exchange.

Shares of SBI closed at Rs 317.65 per scrip on the BSE, down 0.81 per cent from the previous close.