SBI raises $600 mn via dollar bonds

India's largest lender State Bank of India (SBI) raised $600 million by issuing bonds for a period of five years on Wednesday. It is a part of the $10 billion medium-term note programme.

“State Bank of India has concluded the issue of USD 600 Mio Senior Unsecured Fixed Rate Notes having maturity of 5 years and coupon of 5.00% payable semi-annually under Regulation-S,” the bank says in an exchange filing.

“The Bonds will be issued through our London branch as of 17th January 2024 and shall be listed on Singapore Stock Exchange and India International Exchange, GIFT City,” the bank says.

Amid the announcement, shares of SBI rose 0.8% to ₹623.05 apiece in intraday trade on the BSE today. At this share price, the market cap stands at ₹5,56,047.95 crore.

S&P Global Ratings assigned its 'BBB' long term issue rating to benchmark-sized notes issued by SBI’s London branch.

“The rating on the notes reflects the long-term issuer credit rating on SBI (BBB-/Stable/A-3). Our ratings on SBI reflect the bank's dominant market position and its strong deposit franchise. India's robust economic growth supports SBI's loan growth, asset quality, and profitability,” as per S&P Global ratings.

S&P also emphasised the impact that India's robust economic growth has had on SBI’s loan growth, asset quality and profitability.

“The rating on the notes reflects the long-term issuer credit rating on SBI (BBB-/Stable/A-3). Our ratings on SBI reflect the bank's dominant market position and its strong deposit franchise. India's robust economic growth supports SBI's loan growth, asset quality, and profitability,” S&P adds.

This fundraising follows SBI’s issuance of $1 billion, through syndicated loans.

Furthermore, SBI accomplished the issuance of 'green notes' which are senior unsecured floating rate notes worth $250 million.

On January 3rd, the State Bank of India completed the issuance of a Syndicated Loan totaling $1 billion (comprising $750 million and a greenshoe option of $250 million).

“State Bank of India has concluded the issuance of USD 1 billion (USD 750 million and greenshoe of USD 250 million) through Syndicated Social Loan. The loan book was closed on 2nd January 2024,” the filing states.

On November 6, 2023, the curtains lifted on a positive note for SBI's shares, mirroring the upbeat sentiment in the broader market. This optimistic start followed the bank's announcement of 8.03% year-on-year (YoY) surge, with a net profit of ₹14,330 crore, for the July-September quarter of the fiscal year 2023-24.