State Bank of India accepts $600 mn bids for 5-year dollar bonds State Bank of India has accepted bids worth $600 million for its five-year U.S. dollar-denominated bond issue, the lender said in a notice to stock exchanges late on Wednesday. The nation’s largest bank will pay a semi-annual coupon of 5.00%, the notice showed. On Wednesday, Reuters had reported that SBI appointed Bank of America, BNP Paribas, HSBC, JP Morgan, MUFG and Standard Chartered Bank as the joint lead managers for the issue. The initial price guidance was set at a spread of 150 basis points over the five-year U.S. yield. The issue will settle on Jan. 17, and the proceeds will be used for general corporate purposes and to meet the funding requirement of SBI’s foreign offices/branches, the term sheet showed. Earlier this month, SBI raised $1 billion through a syndicated loan.
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)