state-bank-of-india-prices-200-million-frn

State Bank of India prices $200 million FRN

Pricing for the deal from India's largest bank is tight as investors back the bank's need for cash.
On Tuesday afternoon, government-owned State Bank of India SBI, IndiaÆs largest bank by assets and deposits, priced a Baa2BB re-issued senior unsecured $200 million floating rate note FRN at 100.2122 plus accrued interest, equivalent to three-month Libor plus 45 basis points. This compares to earlier guidance of Libor plus 45-47 basis points.

The issue pierces IndiaÆs foreign currency sovereign rating of Baa3 thanks to SBIÆs extensive foreign operations facilitating strong US dollar cash flow, as well as its financial strength and size, says a source.

The five-year 2011 FRN was initially issued in Singapore in December 2006, and raised $300 million.

A rare issuer, SBI has just one other 2009 bond outstanding,...
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