You are here: Home » Finance » News » Banks
Business Standard

State Bank of India taps Taiwanese market for $300 mn via Formosa bonds

SBI Managing Director Ashwini Kumar Tewari said Formosa issuance demonstrates the strong investor base the bank has created for itself in offshore capital markets

Topics
sbi

Abhijit Lele  |  Mumbai 

SBI
State Bank of India

State Bank of India has raised $300 million from the Taiw­anese market through maiden issue of Formosa bonds at a coupon of 2.49 per cent.

Strong demand helped the country’s largest bank tighten pricing by 30 basis points (from initial guidance of T+130 bps area to final pricing of T+100 bps), the lender said in a statement on Thursday. The bank received the tightest spread ever for a five-year public issuance by an Indian financial institution, it said.

The bonds will be issued through its London branch as of January 26 and will be listed on Taipei Exchange (TPEx), Singapore Stock Exchange, and India International Exchange at GIFT City. The issue attracted a wide range of investors, such as supranational agencies, asset managers, private bankers, and financial institutions.

Managing Director Ashwini Kumar Tewari said Formosa issuance demonstrates the strong investor base the bank has created for itself in offshore capital markets. This has helped to venture into new markets and efficiently raise funds from the world’s leading fixed-income investors. This is an indication of trust global investors have in the Indian banking sector generally, and in in particular.

Citigroup, HSBC, Credit Agricole, and Standard Chartered Bank were the joint book-runners for this offering. KGI Securities Taipei, SinoPac Securities Corporation Taipei, and Taishin International Bank acted as co-managers for the issue.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 13 2022. 22:34 IST
RECOMMENDED FOR YOU
.