SBI announces successful pricing of its first international USD denominated public bond (Formosa Bond) for USD 300 Million

(NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, AUSTRALIA, INDIA OR JAPAN)

by Suman Gupta

• USD 300 million 5-year Regulation S Formosa bond issuance at 2.49% coupon

• First public Formosa USD bond issued by an Indian scheduled commercial bank with 15% allocation to Taiwanese investors

• Tightest spread ever for a 5-year public issuance by an Indian financial institution.

• Strong demand helped SBI tighten pricing by 30 bps (i.e. from initial guidance of T+130 bps area to final pricing of T+100 bps)

• Issued off SBI’s Medium Term Note Programme, and also listed on the Taipei Exchange (TPEx), Singapore Exchange Securities Trading Limited (“SGX-ST”) and India International Exchange IFSC Limited (“India INX”)

Mumbai, January , 2022: India’s largest commercial bank, State Bank of India, acting through its London branch raised USD 300 million of “Regulation S” Formosa bonds at a coupon rate of 2.49 per cent. The bond is benchmarked against the 5yr US Treasury and priced at a spread of 100 bps over the benchmark). The bonds will be listed on Taipei Exchange (TPEx), Singapore Exchange Securities Trading Limited (“SGX-ST”) and India International Exchange IFSC Limited (“India INX”).

The transaction received an overwhelming response and saw strong interest from investors across geographies. A wide range of investors such as supranational agencies, assets managers, private bankers and financial institutions have invested in the issue. On the back of strong demand, the price guidance was revised from T+130 bps area to T+100 bps.

Commenting on the transaction, Shri Ashwini Kumar Tewari (Managing Director) said “The successful Formosa issuance demonstrates the strong investor base SBI has created for itself in offshore capital markets allowing it to venture in new markets and efficiently raise funds from the World’s leading fixed income investors. This is an indication of confidence global investors have in the Indian banking sector generally, and in SBI in particular and is also testament to the exceptional access that SBI enjoys in the global capital markets”

Citigroup, HSBC, Credit Agricole and Standard Chartered Bank were the Joint Bookrunners for this offering and KGI Securities Taipei, SinoPac Securities Corporation Taipai, Taishin International Bank Co., Ltd. Taipei have acted as co-managers for the issue.

About State Bank of India: State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country which has so far fulfilled the home buying dreams of 30 lakh Indian families. The home loan portfolio of the bank has crossed the milestone of Rs. 5 lakh crore. As on September 30, 2021, the bank has a deposit base of over Rs. 38 lakh crore with CASA ratio of 46.24% and advances of more than Rs. 27 lakh crore. SBI commands a market share of nearly 35% and about 28% in home loans and auto loans segment respectively. SBI has the largest network of 22,230 branches and 64,122 ATMs / CDMs in India with 70,786 BC outlets. The number of customers using internet banking and mobile banking stand at 94.4 million and close to 21 million respectively. The integrated digital and lifestyle platform – YONO SBI, has around 43 million registered users, which witnesses 12 million logins per day. Accelerating the digital agenda, in excess of 27,000 new digital savings bank accounts were opened per day in the quarter ended September 2021. In terms of digital lending, the bank disbursed personal loans worth Rs. 43,000 crore through the YONO mobile app till Q2 of FY22. SBI also has the highest number of followers on Facebook and Twitter amongst all banks worldwide.