Ribs Mop Up $4.16 Bn

The Resurgent India Bonds issue floated by State Bank of India has mopped up over $4.16 billion, with over 74,300 applications coming in.

Announcing this yesterday, SBI chairman MS Verma said, "We are very proud and happy for the enormous response for the issue. It has been the largest debt raising exercise for the Indian debt market."

The bank has already brought in proceeds worth $ 1 billion from aboard and swapped it with Reserve Bank of India. While 12 to 15 per cent of the FCNR (B) deposits have been converted into the RIB.

The issue has received response from 27 countries which include 50 per cent from Middle East, 20 per cent from South East and 30 per cent from Europe and America. Verma said, "With the success of issue the biggest myth has been exploded_US need not be the largest contributor the issue, In fact Middle east and south east has shown good response. Collections worth $1.5 billion has come in from West Asia alone."

Verma said that as of August 14, the RIB had received responses worth $1.2 billion while collections touched 2.4 billion on August 17. However the number of applications was only 34,000. In the interest of small investors the issue was kept open till August 24.

Of the total collection, SBI has received $300 million worth in pound sterling and DM combined. The collecting banks have mopped up $ 2.5 billion and SBI would provide 50 per cent of the collection at $ 1.25 billion (Rs 6,000 crore).