SBI to raise $1-billion by Bond Issue

Submitted by Anuj Gupta on Sun, 10/04/2009 - 18:44

India’s largest public sector lender, the State Bank of India is planning to raise $1 billion by bond issuance as a part of the bank’s Medium Term Note program or MTN, a tool that allows raising funds through various products including floating rate notes or on a fixed rate, subjected to getting necessary regulatory approvals.

MTN offers flexibility in fund raising program and it is the reason why most of the companies opt for it.

SBI accounts for one-fifth of the total deposits and credit in the banking sector in India. The banking major aims to use proceeds to carry forward its further growth plans. SBI chairman OP Bhatt, a few days back, had hoped that the bank would register a credit growth of 20% during the financial year 2009-10.

The bank, rated BBB- by Standard & Poor’s and Fitch Ratings, is expected to lend the foreign currency funds raised from the issue to Indian companies having international exposure. The bank also plans increase its presence across the globe opening new overseas branches.

SBI’s Chief financial officer SS Ranjan indicated that bank would issue senior global dollar bond with five-year tenure.


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Reliance Industries Purchase an Additional 0.68% Interest in EIH Ltd.

Reliance Industries Purchase an Additional 0.68% Interest in EIH Ltd.

Owner of Energy giant Reliance Industries, Mukesh Ambani has put in an extra 0.68% in EIH Ltd. With this, his total stake in the hotel chain has increased to 14.8%. In a filing to the Bombay Stock Exchange, EIH said that the shares were purchased from the market on Tuesday.

Shares of Reliance surged 0.3% at Rs. 939.3 in proportion to the Mumbai market at 1.26pm, while EIH shares witnessed a 4.5% rise at Rs. 150.2.

On Monday, Reliance was quoted saying that it is widening its horizon and has procured 14.12% stake in EIH for a sum of $217.5 million.

Bajaj Auto Records 55% Surge in Sales of Vehicles in August

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Last month, 2,89,176 two wheelers were sold by Bajaj Auto, a big surge than 1,82,441 units, which were sold in August 2009. The Company’s cumulative sales of two wheelers for the time frame between April and August 2010 increased by 68% and were recorded at 1,397,348 units. The number was high from 833,235 units that were retailed during the same period last year.

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