SBI announces successful pricing of its first international USD denominated public bond (Formosa Bond) for USD 300 Million
· USD 300 million 5-year Regulation S Formosa bond issuance at 2.49% coupon
· First public Formosa USD bond issued by an Indian scheduled commercial bank with 15% allocation to Taiwanese investors
· Tightest spread ever for a 5-year public issuance by an Indian financial institution.
· Strong demand helped SBI tighten pricing by 30 bps (i.e. from initial guidance of T+130 bps area to final pricing of T+100 bps)
· Issued off SBI’s Medium Term Note Programme, and also listed on the Taipei Exchange (TPEx), Singapore Exchange Securities Trading Limited (“SGX-ST”) and India International Exchange IFSC Limited (“India INX”)
Mumbai, January 13, 2022: India’s largest commercial bank, State Bank of India, acting through its London branch raised USD 300 million of “Regulation S” Formosa bonds at a coupon rate of 2.49 per cent. The bond is benchmarked against the 5yr US Treasury and priced at a spread of 100 bps over the benchmark). The bonds will be listed on Taipei Exchange (TPEx), Singapore Exchange Securities Trading Limited (“SGX-ST”) and India International Exchange IFSC Limited (“India INX”).
The transaction received an overwhelming response and saw strong interest from investors across geographies. A wide range of investors such as supranational agencies, assets managers, private bankers and financial institutions have invested in the issue. On the back of strong demand, the price guidance was revised from T+130 bps area to T+100 bps.
Commenting on the transaction, Shri Ashwini Kumar Tewari (Managing Director) said “The successful Formosa issuance demonstrates the strong investor base SBI has created for itself in offshore capital markets allowing it to venture in new markets and efficiently raise funds from the World’s leading fixed income investors. This is an indication of confidence global investors have in the Indian banking sector generally, and in SBI in particular and is also testament to the exceptional access that SBI enjoys in the global capital markets”.
Citigroup, HSBC, Credit Agricole and Standard Chartered Bank were the Joint Bookrunners for this offering and KGI Securities Taipei, SinoPac Securities Corporation Taipai, Taishin International Bank Co., Ltd. Taipei have acted as co-managers for the issue.