SBI in international bond market to raise nearly $500 mn in green bonds

The nation's largest lender State Bank of India Wednesday raised the first tranche of USD 650 million through a maiden green bond offering, which is part of its planned USD 3 billion in such funds for onward lending to green projects.

The five-year dollar money is priced at the US treasury plus 165 basis points, while from for an British investor the coupon will be 3 Libor plus 151 bps.

"SBI has successfully priced our maiden green bonds, a five-year money for USD 650 million at T+ 165 bps, corresponding to 3L + 151 bps approximately," a merchant banking source official said.

The money is raised through the bank's London branch, the source added.

With this issue SBI will become compliant with the global standards as prescribed by the Climate Bonds Initiative, a global not-for-profit investor-focused organisation.

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Equity, currency & commodity markets shut today on account of Muharram

India's currency, debt and equity and commodity markets are closed on Thursday on account of Muharram. Trading will resume on Friday.

On Wednesday, the S&P BSE Sensex ended at 37,121, down 169 points while the broader Nifty50 index settled at 11,234, down 45 points.

HDFC Asset Management Company (down over 8 per cent) and Reliance Nippon Life Asset Management (down over 11 per cent) lost ground on Wednesday, a day after the capital markets regulator Sebi announced major changes to the fee structure for the Rs 25-trillion mutual fund (MF) industry, a decision that will hit the profits of asset management companies (AMCs) but result in savings for investors. The regulator capped the so-called total expense ratio for fund houses with equity assets up to Rs 500 billion at 1.05 per cent, down from as much as 1.75 per cent charged earlier.

Global Markets
Asian stocks rose in early trade on Thursday following a second day of gains on global share markets amid easing investor concern over the impact from the U.S.-China trade war, but markets remained cautious.

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