SBI raises USD 500 million through bonds to fund loan growth. The bonds have a maturity of 5 years and a coupon of 4.50%.
The bank has concluded the issue of USD 500 million Senior Unsecured Fixed Rate Notes, having a maturity of 5 years and a coupon of 4.50 per cent payable semi-annually, SBI said in a regulatory filing.
The bond is benchmarked against the five-year US Treasury and priced at a spread of 75 bps over the benchmark.
The bonds will be issued through the bank’s London branch as of September 9, 2025, and listed on the Singapore Stock Exchange and NSE-IX Exchange, GIFT City, it said.
The transaction received an overwhelming response and saw strong interest from investors across geographies with a final order book in excess of USD 1.1 billion across 85 accounts, SBI said in a statement.
“On the back of strong demand with a peak order book of USD 2 billion, the price guidance was revised from T+105 bps area to T+75 bps. The Notes are expected to carry a final rating of BBB and BBB- from S&P and Fitch, respectively,” it added.
SBI chairman CS Setty said the successful issuance of USD 500 million bond is a testament to the strong appetite for the bonds and diversified investor base the bank has in offshore capital markets, allowing it to efficiently raise funds from the leading global fixed income investors.
The issue has priced at the best ever spreads for an Indian issuer and reflects the confidence of the global investors in India’s growth story in general and the credit quality of the Bank in particular, he added.
The tight pricing has demonstrated a reduction in the borrowing cost for Indian issuers subsequent to the improvement in the credit profile and sovereign rating upgrade, he noted.