NEW DEAL: State Bank of India USD AT1 Perp NC5, Mid 5% Area

Issuer: State Bank of India, acting through its DIFC branch
Subordinated, ranking behind Tier 2 Notes, pari passu in respect of debt instruments classified as Additional Tier 1 Capital and senior to equity shares and perpetual non-cumulative preference shares of the issuer
Issuer ratings: Baa3/BBB-/BBB-
Expected issue ratings: B1/B+/–
Reg S
Issue size: $bench
Dividend stopper: Applicable. Restrictions on dividends/distributions on, and repurchases of, ordinary shares & other parity or junior obligations if interest on the Additional Tier 1 Notes is cancelled
CET1 trigger event: Temporary write-down (partial or full) upon CET1 Ratio of the issuer or the group being at or below 5.5% if calculated at any time prior to 31 March 2019 and below 6.125% if calculated at any time from and including 31 March 2019. The Issuer may, at its discretion and subject to RBI Guidelines, reinstate the value of the written down Additional Tier 1 Notes.
PONV trigger event: Permanent write-down (partial or full) to the extent required by the RBI. “PONV Trigger Event” means the earlier of:
a decision that a write-down, without which the Issuer or the Group (as the case may be) would become non-viable, is necessary, as determined by the RBI; and (ii) the decision to make a public sector injection of capital, or equivalent support, without which the Issuer or the Group (as the case may be) would have become non-viable, as determined by the RBI
Other redemption events: Upon a regulatory event or tax event, subject to the prior approval of the RBI
JBRs: BofAML, Citi, HSBC, JPM, National Bank of Abu Dhabi, SBI Capital Markets, StanChart

** EXPECTED SIZE: US$500M
** TIMING: AS EARLY AS TODAY

** KEY COMPS:
Security AmtOut Moody S&P Fitch B Px   B YTC
SBIIN  3.622% 04/17/19 750M Baa3 BBB- BBB- T2+146 G+136
DBSSP  2.246% 07/16/19 750M Aa2 N.A. AA- T2+92 G+80
WOORIB 2.625%  07/20/21 500M A2 A N.A. T5+82 G+88
ICBCAS 1.875%  08/11/19 500M A1 N.A. N.A. T2+118 G+105

DBSSP  3.60%   45nc09/07/21 750M A3 N.A. BBB $99.60 3.69%