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February 18, 2008 |
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STATE BANK OF INDIA: Gov't to Issue Special Securities With reference to the Rights Issue of the State Bank of India, which is scheduled to open for subscription from Feb. 18, 2008, the company has informed the Bombay Stock Exchange that the Government of India, via letter dated Dec. 3, 2007, communicated that the subscription would be against the issue of SLR Marketable Government Securities. The disclosures were made accordingly in the Letter of Offer filed with Stock Exchange. However, the Government vide letter dated Feb. 14, 2008, has informed the bank that the matter was revisited by the Government in the light of suggestions received by it from the Reserve Bank of India and it was decided that the subscription by the Government to the Rights Issue would be through issuance of Special Marketable Government Securities. In this connection the bank will issue a corrigendum to the letter of offer for the attention of its equity shareholders. The bank has intimated SEBI in this regard and have also filed copies of the aforementioned Government letter dated Feb. 14, 2008, and the proposed corrigendum with SEBI. The Corrigendum proposed to be issued is as follows: "Issue of 105,259,776 equity shares of face value of INR10 each at a premium of INR1,580 per equity share aggregating to an amount equivalent to INR167,363.04 million to the equity shareholdeINRon rights basis in the ratio of one equity share for every five equity shares held on the record date i.e. February 04, 2008 (the "issue"). The issue price for equity shares is 159 times of the face value of the equity share. The Letter of Offer dated February 1, 2008, filed with the National Stock Exchange of India Ltd and the Bombay Stock Exchange Ltd indicates that the Government of India would subscribe to the Rights Issue of Equity Shares of the Bank through the issue of SLR marketable government securities. However, based on a clarification given by Government, vide letter dated February 14, 2008, the disclosures in the Letter of Offer relating to the subscription by the Government will stand amended in the manner set forth below." All references to "SLR marketable government securities" / "SLR marketable securities" / "SLR Securities" / "SLR marketable Government bonds", as far as it relates to the subscription by the Government of India in the Rights Issue shall stand amended to and substituted by the phrase special marketable government securities." Such amendment and substitution will occur on pages 45, 279, 291, 292 and 295 of the Letter of Offer and pages 4,5,6,27 & 103 of the Abridged Letter of Offer and item no.20 under General Instructions in the Composite Application Form." Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/ -- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * Standard & Poor's Ratings Services, on June 18, 2007, assigned its 'BB' issue rating to the State Bank of India's proposed USNZ$225 million Hybrid Tier I perpetual notes under its USNZ$5 billion MTN program. The Hybrid Tier I notes will be perpetual notes with a call option 10 years from the date of issue. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2007, Fitch Ratings affirmed the bank's 'C' individual rating. Moody's Investors Service placed a Ba2/Not Primerating on State Bank of India's foreign currency bank deposits, Ba2/Not Prime on Financial Strength Rating in June 2006. |
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