SBI issue Formosa Bonds

Tags: Economics/Business

SBI became the first Indian bank to issue Formosa bonds and it has  raised $300 million.

• The bond was sold through the London branch of the SBI.
• The bonds will be listed in Taipei , Singapore stock exchange  and also at the India International Exchange at Gift City in Gujarat. 
• The bonds are of five year duration and its interest rate has been linked with the US Treasury benchmark.

Formosa Bond

• It is issued by a non Taiwanese company in Taiwan. 
• The bond is denominated in currencies other than the Taiwan dollar.
• The currency of Taiwan is Taiwan Dollar.
• The bond is listed on the Taiwan stock exchange.
• Taiwan was earlier called Formosa  and Taipei is its capital.

For benchmarking and US Treasury benchmark see the 7 January 2022 post