SBI Sets Sights on $3 Billion Global Fundraising Spree-Dollar Notes or Beyond in the Mix

State Bank of India (SBI), the country's largest bank, released a statement today announcing that its Executive Committee of the Central Board will meet on May 20, 2025, to consider raising up to $3 billion by a public issue and/or private placement of senior unsecured notes. The raising during the financial year 2025-26 shall be in one or more tranches and in US dollars or other leading foreign currencies.

 

According to SBI's regulatory filing, the proposed notes qualify to be issued under Regulation-S and Rule 144A of the US Securities Act, thereby making them available to a broad base of global investors. The step is part of SBI's overall strategy to raise capital to fund growth plans, achieve capital adequacy norms, and fund overseas operations. The step is taken against the backdrop of rising global interest rates, a strong rupee, and high investor demand for Indian sovereign and quasi-sovereign debt.

 

SBI has established a history of tapping foreign markets at low cost funding, as evident from its $1 billion January 2023 bond sale. Pending approval, this fresh fundraising will help SBI build its Tier II capital as well as drive robust loan growth in the context of robust credit demand.

 

Source: CNBC-TV18

 

Source: CNBC-TV18State Bank of India (SBI), the country's largest bank, released a statement today announcing that its Executive Committee of the Central Board will meet on May 20, 2025, to consider raising up to $3 billion by a public issue and/or private placement of senior unsecured notes. The raising during the financial year 2025-26 shall be in one or more tranches and in US dollars or other leading foreign currencies.

 

According to SBI's regulatory filing, the proposed notes qualify to be issued under Regulation-S and Rule 144A of the US Securities Act, thereby making them available to a broad base of global investors. The step is part of SBI's overall strategy to raise capital to fund growth plans, achieve capital adequacy norms, and fund overseas operations. The step is taken against the backdrop of rising global interest rates, a strong rupee, and high investor demand for Indian sovereign and quasi-sovereign debt.

 

SBI has established a history of tapping foreign markets at low cost funding, as evident from its $1 billion January 2023 bond sale. Pending approval, this fresh fundraising will help SBI build its Tier II capital as well as drive robust loan growth in the context of robust credit demand.

 

Source: CNBC-TV18