SBI is the latest bank to issue dollar bonds under the Reserve Bank of India’s (RBI’s) concessional swap window
State Bank of India (SBI), the country’s largest lender, on Monday raised $300 million through three-year senior unsecured floating-rate notes under Regulation S at a coupon of SOFR plus 100 basis points, with interest payable quarterly in arrears. The bonds will be issued through its London branch on July 6, 2026.
SBI is the latest bank to issue dollar bonds under the Reserve Bank of India’s (RBI’s) concessional swap window. However, the issuance size is lower than what the market had perhaps expected.
Already, three entities — HDFC Bank, Axis Bank, and Power Finance Corporation (PFC) — have raised dollar bonds since the RBI operationalised the concessional swap window.
Spreads on recent dollar bond issuances by Indian borrowers have steadily widened. HDFC Bank raised $750 million through five-year bonds at 90 basis points over the corresponding US Treasury yield, followed by Power Finance Corporation (PFC) at 105 basis points and Axis Bank at 110 basis points for their respective $300 million five-year issuances.
HDFC Bank’s final bond coupon worked out to 5.067 per cent, its tightest-ever spread on a dollar bond issue. PFC’s coupon was 5.32 per cent, while Axis Bank’s was 5.35 per cent.
First Published: Jun 29 2026 | 6:10 PM IST