Overview

• SBI is marketing five-year US dollar senior unsecured notes, with the deal expected to be finalised in the coming days, according to bankers.
• The lender is targeting at least $500 million and could raise up to $1 billion depending on investor demand, the bankers said.
• Initial price guidance is set at U.S. Treasuries plus 105 basis points, and bankers expect the final spread could come in below 100 basis points on strong orders.
• S&P assigned a BBB issue rating and Fitch gave a BBB-(EXP) to the proposed notes, citing the bank’s dominant market position and a high likelihood of sovereign support.
• The issuance will draw from SBI’s $10 billion medium-term notes programme, with the securities ranking pari passu with other unsecured debt, and market participants report lower dollar yields for SBI following the sovereign upgrade.