SBI to evaluate raising up to $3 billion via offshore bonds on May 20
Published on 14/05/2025 09:08 PM
SBI to evaluate raising up to $3 billion via offshore bonds on May 20In a stock exchange filing, the bank said the funds could be raised in one or more tranches via senior unsecured notes under Regulation-S and Rule 144A of the US Securities Act, either through public offerings or private placements. The notes will be denominated in US dollars or any other major foreign currency.By Poonam Behura May 14, 2025, 9:08:35 PM IST (Published)2 Min ReadIndia’s largest lender, State Bank of India (SBI), said on Wednesday that its executive committee will meet on May 20 to consider a proposal to raise long-term funds of up to $3 billion through offshore bonds during the financial year 2025-26.
In a stock exchange filing, the bank said the funds could be raised in one or more tranches via senior unsecured notes under Regulation-S and Rule 144A of the US Securities Act, either through public offerings or private placements. The notes will be denominated in US dollars or any other major foreign currency.
The move is part of the bank’s broader capital-raising strategy to support its growth ambitions, meet capital adequacy norms, and provide funding for overseas operations. The decision comes amid increasing global interest rates, a relatively stable rupee, and strong investor appetite for Indian sovereign and quasi-sovereign paper.
India’s financial institutions, including SBI, have historically tapped international markets for cost-effective funding, particularly when liquidity conditions are favorable. In January 2023, SBI raised $1 billion through 5-year senior unsecured bonds, which received strong demand from investors across Asia, the Middle East, and Europe.
If approved, this new round of fundraising could help SBI shore up its Tier II capital base and support loan growth amid a strong credit demand environment in India.
SBI, a majority government-owned entity, is often seen as a proxy for India’s sovereign risk and generally enjoys favorable pricing in overseas bond markets.
Shares of the lender ended 0.2% lower at a price of ₹800.35 on Wednesday.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsSBIshare market today