State Bank of India raises $1 billion in overseas bonds

State Bank of India, the country's largest lender, today announced the conclusion of a $1 billion issue overseas bonds.

SBI raised the fixed rate senior unsecured notes with a maturity of 5 years at a coupon rate of of 4.50 per cent payable semi-annually, as a stand-alone bond programme as per US Securities Exchange Commission (SEC) regulations.

The bonds will be issued through SBI's London branch as of 27 July 2010 and would be listed on the Singapore Stock Exchange, SBI said in a filing with the Bombay Stock Exchange.

Of the total bond issue, US-based investors received 55 per cent; Asian investors received 28 per cent while European investors were allocated the balance 17 per cent.

Asset and fund managers picked up 63 per cent of the deal, commercial and investment banks subscribed for 9 per cent, private banks subscribed for 15 per cent and insurance/pension funds subscribed for 4 per cent.

SBI recently received government approval to merge State Bank of Indore with itself. The bank is also planning to list its life insurance business, SBI Life.