Rediff On The NeT Business News: Resurgent India Bonds

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	Resurgent India Bonds • Our people made RIBs successful, so give us a share: Kerala Both planners and politicians in Kerala feel the Central government owed the state a major share of the Rs 160 billion mobilised under the bonds as Keralites working in the Middle East and southeast Asian countries constituted the bulk of contributors. In fact, Chief Minister Nayanar has written to the PM demanding the due share. • RIB-happy SBI plans overseas expansion, foreign currency loans State Bank of India would initially park about $ 1 billion abroad in order to help the Indian corporates in foreign currency borrowings and to lower the benchmarking of lendings by others in rupee as well as external currencies for infrastructural development. It would also invest in government securities. • RIBs collect $ 3.46 billion, market calls it 'decent success' Foreign exchange dealers say the RIBs' impressive show will boost the foreign institutional investors' sentiment that might help shore up the sliding rupee. • RIBs net $ 3 billion SBI sources said the bank received a total 63,000 applications so far from the subscribers to the bonds which are dominated in three currencies -- US dollar, British pound and German mark. • Asian crisis, holidays blamed for RIBs' moderate show, but SBI remains optimistic SBI has not officially announced the actual amount raised so far through the Resurgent India Bonds. But reliable sources told Rediff On The Net that it is ''very close'' to the target of $ 2 billion. A source at a merchant banking firm said: "The emerging markets always faced this kind of problem. I'm sure that SBI will achieve its target before August 24." • RIBs' early closing date extended to August 24 SBI has said the decision was taken due to persistent demands from investors worldwide and a number of intervening holidays in all the markets like southeast Asia, India, the Middle East and the US reached by the bank. • Great response to RIBs, say officials State Bank of India sources said there has been tremendous response to the Resurgent India Bond in the two days it has been around. • An issue of bond, bonding and a win-win game 'If I were a foreign bank or MNC, I would catch hold of some NRI having investible funds of say, Rs 1 million. I would give him a loan of Rs 9 million against collateral of these bonds. Both of us will have a certain windfall!' Investment consultant A N Shanbhag assesses the Resurgent India Bonds. • SEC waves green light to SBI's bonds in the US The SEC decision brought down the curtain over week-long suspense. SBI hopes to net 25-30 per cent of its RIB target of $ 2 billion from US-based Indians, particularly those in the Silicon Valley. Its plans could have gone awry had the SEC refused to give its clearance. • SBI weaves RIB web to net NRIs, OCBs State Bank of India is leaving no medium untapped to promote its Resurgent India Bonds. • RIB poised to 'create a new benchmark for sovereign borrowing' An official of SBI Caps, lead arranger to SBI's Resurgent India Bond issue, says that the bonds are cheap five-year funds, considering the annual depreciation of about five per cent of the rupee. A JP Morgan report points out that the issue provides an excellent opportunity for investors especially for rupee returns. • SBI hopes RIBs will net $ 1 billion from Gulf states "This is an opportunity for NRIs and OCBs to participate in the process of growth and development in India," SBI chairman MS Verma said in Dubai, while taking part in a roadshow. "India is today a nation on the march. In the next ten years, India will emerge as one of the strongest economies in the world. It will be the fourth or fifth largest economy."
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