The nation’s largest lender State Bank of India has hit the overseas bond market with a dual tranche benchmark issue of 5-year and 10-year maturity to raise up to USD 1 billion.

According to one of the merchant bankers working on the issue, SBI on Thursday launched the roadshow in major global financial centres and will close the transaction later in the day.

The bank has given an initial pricing of 240 bps over the US treasury for the 5-year money and 265 bps over the treasury for the 10-year bond, said the merchant banker, who did not want to be quoted as the deal is yet to be closed.

The US treasury is trading at around 2.75 per cent.

The bank could not be immediately contacted for comments.

On Tuesday, Oil India had raised USD 1 billion from a similar dual tranche issue, making it the single largest dual tranche Reg S issue from the country, and the oil major’s largest ever.

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