Business
Last year in April, the bank mopped up $1.25 billion from overseas debt sale through a dual tranche bond programme, making it the largest-ever offering from a domestic issuer.
Updated : Mar 20, 2018, 03:21 AM IST
State Bank of India (SBI) may delay $1.5 billion overseas bond issuance programme due to volatility in foreign market as a result of Greek debt crisis.
"There is volatility in the global market due to Greek issue. No one would venture till stability returns," a senior SBI official said.
The bank was in process of holding roadshows for the issuance of overseas bond.
Last year in April, the bank mopped up $1.25 billion from overseas debt sale through a dual tranche bond programme, making it the largest-ever offering from a domestic issuer.
The bank raised $750 million with 5-year tenure at US treasury interest rate plus 205 basis points, while it priced the 10-year $500 million issue at 225 basis points over the treasury.
The investor breakdown by regions stood at 53 per cent non-resident US investors; 24% from Asia; and 23% from Europe for the 5-year Reg S issue, while the investor type were 70% asset managers/fundhouses; 15% banks; nine per cent private banks and six per cent insurance and others.
With regard to the 10-year tranche, of the 290 accounts, 40% came from the non-resident US investors, 33% from Europe and the rest 27% from Asia.
The investors included 50% asset managers/fund houses, 30% banks and the remaining 20% insurers, corporates and others.
Greeks on Sunday rejected a rescue package from its international creditors, throwing the future of the country's Eurozone membership in doubt.
Frustrated and angered Eurozone leaders gave Greek Prime Minister Alexis Tsipras a last-minute chance till coming Sunday to finally come up with a viable proposal on how to save the country from financial ruin.