State Bank of India (SBI), country’s largest public sector lender is planning to raise up to $1 billion through five-year bonds next week, in order to meet foreign currency requirements of Indian companies. The bank has employed six bankers to arrange for the dollar-denominated bond offering and it will issue five-year senior notes through its London branch.
The entity is taking this initiative after considering lending rates in India, which remained high due to sticky inflation. Those with the natural currency hedge through revenues from exports and earnings such as dividends and royalties from abroad are in a position to raise cheap resources.
