SBI to offer 15-year retail bonds at 9.95%

[Deletedid1]

MUMBAI: State Bank of India will sell bonds to retail investors offering returns of 9.75% and 9.95% on 10- and 15-year bonds, respectively.

In a letter to the Bombay Stock Exchange, the bank said its central board has approved raising funds through the issue of subordinated debt (lower tier II bonds). It has approved selling bonds worth Rs 1,000 crore, with an option to retain oversubscription of up to Rs 1,000 crore. In case of retail demand, SBI can retain the oversubscription beyond Rs 2,000 crore up to Rs 10,000 crore.

This time around the bank is offering different rates for retail and non-retail investors. Non-retail investors, who include institutions and high net-worth individuals who invest in bulk, will receive 9.3% for 10 years and 9.45% for 15-year investments. The bank also has an option to pre-pay investors in the 10-year bonds after 5 years and after 10 years for 15-year bondholders.

Senior officials of the bank said that details regarding the opening of the issue would be announced on Tuesday. Although these investments are long-term in nature, investors are assured liquidity through the listing of these bonds.

Investment bankers who are distributing the issue say earlier experience suggests that SBI is bound to receive a huge oversubscription on the first day itself. "There are many banks that are offering 9.5% and above on fixed deposits. But these investments typically are for one-two years and interest rates are widely expected to come down in the long-term," said an investment banker.

SBI`s earlier retail bond issue, which offered a much lower return, was a huge success with the bonds being sold out on the first day. Successful investors got an opportunity to make equity-like gains as the bonds were listed at a 5% premium on listing. While the returns on the bonds are even better, the listing position would depend on the extent of unsatisfied demand in the public issue. Prices of SBI`s earlier bonds fell marginally on Monday, but the securities continue to trade at a significant premium over the issue price.

Although the size of the issue is minuscule compared to the bank`s balance sheet, the issue is part of an ongoing programme to develop a market for long-term resources. The bank presently funds all its long-term loans, which include home loans and loans to the infrastructure sector, through core savings deposits and medium-term deposits. The long-term bonds will enable the bank to match some of its long-term fixed liabilities.

Read more: SBI to offer 15-year retail bonds at 9.95% - The Times of India [url=http://timesofindia.indiatimes.com/business/india-business/SBI-to-offer-15-year-retail-bonds-at-995/articleshow/7498122.cms#ixzz1E9U9nbd1]http://timesofindia.indiatimes.com/business/india-business/SBI-to-offer-15-year-retail-bonds-at-995/articleshow/7498122.cms#ixzz1E9U9nbd1[/url]

[D9]

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[Nikkar Narayana]

%<>( %<>( %<>( %<>( %<>(

[katharnak]

*=: *=: *=: *=: *=: *=:

Its useful for me

[Deletedid1]

[quote author=katharnak link=topic=156580.msg1856790#msg1856790 date=1297884886]
*=: *=: *=: *=: *=: *=:

Its useful for me
[/quote]

ninna chitti gadu edo cheppadu baa 55 and aove vallaki post office lo 11% istunnaru ani  sCo_hmmthink sCo_hmmthink sCo_hmmthink

[peru_edaite_enti]

[quote author=BENZBABU link=topic=156580.msg1856802#msg1856802 date=1297885230]
ninna chitti gadu edo cheppadu baa 55 and aove vallaki  post office lo 11% istunnaru ani  sCo_hmmthink sCo_hmmthink sCo_hmmthink
[/quote] LoL.1q LoL.1q LoL.1q LoL.1q

[katharnak]

[quote author=BENZBABU link=topic=156580.msg1856802#msg1856802 date=1297885230]
ninna chitti gadu edo cheppadu baa 55 and aove vallaki post office lo 11% istunnaru ani  sCo_hmmthink sCo_hmmthink sCo_hmmthink
[/quote]

did u ever try post office? nen chinnapudu vine vadini.. konchum cheppu...

[htnamus]

[quote author=CBZ link=topic=156580.msg1856803#msg1856803 date=1297885277]
LoL.1q LoL.1q LoL.1q LoL.1q
[/quote] sCo_hmmthink sCo_hmmthink sCo_hmmthink

[Deletedid1]

[quote author=katharnak link=topic=156580.msg1856809#msg1856809 date=1297885389]
did u ever try post office? nen chinnapudu vine vadini.. konchum cheppu...
[/quote]

ammamma ki undedi mama............ ippudu teleedu  sCo_hmmthink sCo_hmmthink

[psycopk]

denikante.. baga peru unna company stock lo invest cheyatam 1000 times better...


meeru ippudu 1 lack iste...vedi lekka prakaram meeku 15years tarwata... 2.5 lack chesi istadu... aa matram daniki idi waste...
15% offer cheste appduu think cheyochu.. ippudu waste...

[peru_edaite_enti]

[quote author=psycopk link=topic=156580.msg1856828#msg1856828 date=1297885574]
denikante.. baga peru unna company stock lo invest cheyatam 1000 times better...


meeru ippudu 1 lack iste...vedi lekka prakaram meeku 15years tarwata... 2.5 lack chesi istadu... aa matram daniki idi waste...
15% offer cheste appduu think cheyochu.. ippudu waste...
[/quote]

ante stock lo risk factor ekkuva kada.....

[Nikkar Narayana]

9.5% for 10 yrs is 2 low anukunta kada, not sure how it works  sCo_hmmthink sCo_hmmthink sCo_hmmthink

[htnamus]

[quote author=CBZ link=topic=156580.msg1856840#msg1856840 date=1297885717]
ante stock lo risk factor ekkuva kada.....
[/quote]10yrs ala odileddam anukunte risk factor is less

[peru_edaite_enti]

[quote author=HS link=topic=156580.msg1856845#msg1856845 date=1297885781]
10yrs ala odileddam anukunte risk factor is less
[/quote]

manalo mana maata, enta dasavu enti baa?? sSc_hiding2 sSc_hiding2

[psycopk]

[quote author=HS link=topic=156580.msg1856845#msg1856845 date=1297885781]
10yrs ala odileddam anukunte risk factor is less
[/quote]

yeah