Thursday, July 26, 2012

SBI launches $1 bln bond sale

State Bank of India launched a five-year dollar bond sale aiming to raise $1 billion or more. India’s banking giant has given an initial guidance of around 400 basis points over Treasuries. Indian corporate house and financial institutions refrained from selling dollar bonds for quite a time as a surge in risk aversion and India’s worsening economic and fiscal fundamentals have made it expensive to borrow in dollars. As the local interest rates is so high it is beneficial for Indian firms to borrow overseas.

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