State Bank of India (SBI) is planning to raise $1 billion through overseas bond market with a benchmark issue. The initial pricing of the fixed rate, five-year senior unsecured bond is fixed at US treasury plus 275 basis points.
The current issue carries a Baa2 rating from Moody’s and BBB- by Standard & Poor’s. The issue is being managed by four merchant bankers. This ongoing issue is the third bond sale by SBI in the past two years, with the latest being the $1.25 billion it had raised in a 10-year issue last July.
The bank reported 4.08% rise in its net profit at Rs 3396.06 crore for third quarter ended December 31, 2012 as compared to Rs 3263.04 crore for the same quarter in the previous year. Total income from operation of the bank increased by 14.11% at Rs 33992.11 crore for quarter under review as compared to Rs 29787.37 crore for the quarter ended December 31, 2011.
