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MUMBAI – The board of State Bank of India approved raising up to $2 billion via overseas bond sales, the bank said in a stock exchange notification Tuesday. The bonds may be denominated either in dollars or any other currency but are likely to be in multiple tranches.

In January 2021, the banking behemoth mopped up $600 million at a record low coupon offered to international investors. It sold five and a half-year duration bonds at a coupon of 1.8 per cent, which was reportedly the lowest ever coupon by any Indian borrower in the category. It obtained bids worth $2 billion for the bond sale.

Global bond sales have dried up for now as the US Treasury benchmark, a global rate gauge, surged as much as 3.2 per cent amid inflation fear.

This year, the US Treasury yields have more than doubled, raising overall funding costs after an extending Russia-Ukraine war triggered a global spike in commodity prices.


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