By Reshmi Basu
New York, Feb. 8 - State Bank of India (Baa2/BBB-/BBB-) sold a $700 million two-part note offering, according to a market source.
The first tranche included $400 million of hybrid tier I perpetual notes, which priced at par to yield 120 basis points more than mid-swaps. That came at the tight end of revised talk, which was set at mid-swaps plus 120 to 125 bps, lowered from 125 to 135 bps.
Those notes are callable on Feb. 15, 2017. If the notes are not called, the coupon steps up by 100 bps.
Meanwhile the second tranche was comprised of $300 million in five-year senior notes, which priced at par to yield Libor plus 38 bps. That also priced at the tight end of revised guidance, which was lowered to Libor plus 38 to 40 bps from initial talk of 40 to 43 bps.
Barclays Capital, Citigroup, Deutsche Bank and HSBC were mandated to lead the Regulation S deal, which was priced off of the bank's euro medium-term note program.
This was the second offering this year from the New Delhi, India-based state-run bank. On Jan. 16, State Bank of India reopened its eurobonds due 2011 to add $200 million.
| Issuer: | State Bank of India
|
| Issue: | Two-part notes offering
|
| Total amount: | $700 million
|
| Lead managers: | Barclays Capital, Citigroup, Deutsche Bank and HSBC
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 15
|
| Distribution: | Regulation S
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Hybrid notes
|
| Amount: | $400 million
|
| Issue: | Hybrid tier I notes
|
| Maturity: | Perpetual
|
| Coupon: | 6.439%
|
| Issue price: | Par
|
| Spread: | 120 basis points plus mid-swaps
|
| Call option: | Callable on Feb. 15, 2017. If not called, coupon steps up by 100 bps
|
|
|
| Senior notes
|
| Amount: | $300 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2012
|
| Coupon: | Three-month Libor plus 38 bps
|
| Issue price: | Par
|
| Yield: | Three-month Libor plus 38 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
