INSUBCONTINENT EXCLUSIVE:
response to an earlier sale of perpetual bonds by State Bank of India too helped turn the sentiment that was weak until recently due a
times the issue size, three people familiar with the matter told ET
are said to have invested in these bonds, the people said
Axis Bank is estimated to have purchased Rs 2,500 crore of the paper, while ICICI Bank may have bought Rs 1,500 crore of bonds and Kotak
Mahindra Bank about Rs 500 crore
publication of this report
paper.
The bonds offered 9% with a 10-year maturity
maturity and are a quasi-debt instrument
The state-run bank received two-and-a-half times more subscriptions at Rs 10,000 crore
It too rejected the additional amount.
SBI bonds were supposed to offer 9.75% initially, but settled at 9.56% due to the huge investor
interest.
Both bonds have rallied in the secondary market immediately after listing.
HDFC bond yield dipped 13 basis points to 8.87%, while
SBI bonds are now yielding 11 basis points lower at 9.45%, giving investors mark-to-market gains on their holding
Bond prices and yields move in opposite directions.
