State Bank of India (SBI) has priced a 5-year $750-million bond at a coupon rate of 4.875 per cent.

The issue comes at a time of good demand for credit despite the Reserve Bank of India (RBI) raising interest rates by 250 basis points since May last year. The latest data from the central bank shows bank credit growth at 15.7 per cent outpacing deposit growth of 10.2 per cent.

SBI said it was offering a rate 145 basis points above the five-year US treasury bond. The bonds were issued under its MTN (medium-term note) programme and will be listed on Singapore SGX and India INX, Gift City.

The notes are expected to carry a final rating of BBB- both from Standard & Poor’s and Fitch.

SBI said the final order book was around $2.9 billion from 181 accounts.

The initial order book was higher at $5.4 billion which allowed the bank to lower the spread to 145 basis points from 185 basis points.

``The successful issuance demonstrates the strong investor base SBI has created for itself in offshore capital markets, allowing it to efficiently raise funds from the world’s leading fixed-income investors, even during periods of heightened volatility,’’ SBI said.

Shares of the country’s largest lender ended at Rs 578.05 on the BSE on Friday — a gain of 2.32 per cent over the last close.

“The issue demonstrates global investors’ confidence in the Indian banking sector in general and in SBI in particular, and it also attests to SBI’s unparalleled access to global capital markets,’’ Dinesh Khara, State Bank of India chairman, said.

Citigroup, Emirates NBD Capital, HSBC, J.P. Morgan, MUFG and Standard Chartered Bank were the joint global co-ordinators and joint lead managers to the issue.

Last month, the bank raised Rs 3,717 crore through additional Tier 1 (AT1) bonds. In February, it raised Rs 4,544 crore through AT1 bonds and in September, it mobilised Rs 6,872 crore.

SBI Cards

SBI Cards and Payment Services Ltd on Friday reported a marginal increase in net profit to Rs 596 crore in the quarter ended March 2023 against Rs 581 crore a year ago.

Total income of SBI Cards increased to Rs 3,917 crore against Rs 3,016 crore in the year-ago period.