State Bank of India has concluded the issuance of $300 million senior unsecured floating rate notes having maturity of 3 years amid demand for leverage from non-resident Indians wanting to place fresh foreign currency non-resident (bank) deposit with the bank at higher interest rates.
The bonds will be issued through the London branch as of July 6.
Mobilisation drive
In a bid to attract foreign capital, the RBI announced a host of measures on June 5. To encourage mobilisation of fresh 3–5-year FCNR (B) deposits, the central bank said it will bear the full hedging cost to banks till September 30. It has also exempted the deposits so raised from statutory pre-emptions.
The upshot of the two aforementioned measures is that banks have increased interest rates to 6-7 per cent thereabouts, from the earlier 3 per cent odd levels.
