With the Fed on track to persist with rate increases, investors are looking for ways to immunize their portfolios. State Bank of India tapped into the investor’s desire to reduce duration by issuing a floating rate bond, where the investors get a higher rate of interest in every time Libor goes up. Private banks got 29% allocation from these bonds and were reported to be offering handsome leverage against them, on account of lower interest rate risk.
The Sole book runner Standard Chartered tapped into excess demand by doing an additional tranche of $ 100 million.
