SBI Concludes Successful Pricing Of $500 Mn Reg S Bond

State Bank of India (SBI), through its London branch, has successfully priced USD 500 million worth of "Regulation S" bonds, securing a coupon rate of 5.125 per cent. Benchmarking the bond against the 5-year US Treasury, the issue was priced at a spread of 82 basis points (bps) over the benchmark. The bonds will be listed on the Singapore Exchange (SGX-ST) and India INX.

The issuance witnessed overwhelming demand, attracting a final order book exceeding USD 1.70 billion across 125 accounts globally. At its peak, the order book reached USD 2.8 billion, prompting a revision of price guidance from T+115 bps area to T+82 bps. The bonds are expected to receive ratings of Baa3 from Moody’s and BBB- from Fitch, reflecting the strength and credibility of the offering.

Global Investor Confidence
Shri Challa Sreenivasulu Setty, Chairman of SBI, commented, "The successful issuance of USD 500 million is a testament to the strong appetite for SBI bonds and the Bank's diversified investor base in offshore capital markets. It underscores the confidence that global investors have in the Indian banking sector generally and in SBI in particular."

Key Participants and Structuring
The transaction was facilitated by prominent global financial institutions, with BNP Paribas, DBS, HSBC, J.P. Morgan, MUFG, and Standard Chartered Bank acting as Joint Bookrunners for the offering.

SBI’s digital platform YONO continues to transform banking in India, with over 8.1 crore registered users and 61 per cent of new savings accounts opened digitally in Q2 FY25. The bank disbursed Rs 1,253 crore in pre-approved personal loans via YONO during the same period.

With over 22,640 branches, 63,000 ATMs, and a robust social media presence, SBI remains a global leader among financial institutions, ranking as the 4th most trustworthy bank worldwide by Newsweek.

This successful bond issuance reinforces SBI's stature in the global financial market and its ability to attract top-tier investors while supporting India's economic aspirations.