SBI Unleashes Global Fundraising Fever—$3 Billion Plan Sets Investors Abuzz

Image Source: Indira Securities

State Bank of India (SBI), India's largest lender, is preparing for a significant international fund-raising programme after getting board go-ahead to raise as much as $3 billion of long-term capital in FY2025-26. The funds will be raised through a public issue and/or private placement of senior unsecured notes of US dollar or other significant foreign currencies.

Highlights:

Board Greenlight: SBI Central Board Executive Committee approved the proposal on May 20, 2025, to consider and implement long-term fund-raising up to $3 billion in a single tranche or multiple tranches subject to market conditions and strategic needs.
Flexible Issuance Structure: The issue can be made through public offers or private placements under Reg-S/144A with a choice of issuing senior unsecured notes in US dollars or other key currencies, thereby enabling SBI to access varied pools of international capital.
Strategic Growth Move: This initiative is part of SBI’s broader strategy to strengthen its long-term funding base, support international and domestic expansion, and maintain robust liquidity amid rising global interest in Indian financial instruments.
Market Impact: Despite the announcement, SBI shares closed slightly lower at ₹785.35 on the BSE, reflecting cautious investor sentiment as the bank finalizes the structure and timing of the first tranche.
Next Steps: The bank will monitor market conditions and regulatory approvals before proceeding, with the final structure and timing yet to be determined.

SBI’s ambitious fundraising plan signals its intent to cement its position as a global banking powerhouse, leveraging international markets to fuel growth and innovation.

Sources: Moneycontrol, CNBC-TV18, Economic Times, Business Standard