Global investors flock to SBI’s $500 m Reg S bond, order book hits $2.46 bn

NEW DELHI — State Bank of India’s latest Reg S bond issuance drew a strong response from the overseas fixed‑income community. The $500 million, 5.25% coupon issue was eventually priced at an 88‑basis‑point spread above the U.S. 5‑year Treasury yield, after an initial guidance of roughly 120 basis points.

A total of 145 investors placed orders, expanding the order book to $2.46 billion – five times the size of the offering. The tighter spread translated into a 32‑basis‑point reduction in borrowing costs for the bank.

Chairman Challa Srinivasulu Setti said the outcome reflects deep investor interest and the bank’s wide‑reaching investor base despite heightened global uncertainty.

The bonds have earned investment‑grade ratings (S&P BBB, Fitch BBB‑, CARE Ratings BBB+ / Stable) and will be listed on SGX, India INX and NSE International exchanges.