SBI's Stellar $500 Million Bond Issue: A Testament to Global Trust
State Bank of India (SBI) has successfully raised $500 million via bonds to support loan expansion. The bonds have a 5-year tenure with a 4.5% interest rate, attracting substantial investor interest, and have been listed on major stock exchanges. This issue underscores investor confidence in India's economic growth.
- Country:
- India
On Tuesday, the State Bank of India (SBI), the nation's largest lender, announced the successful raising of USD 500 million through bond issuance to fuel its loan growth. The transaction involved USD 500 million Senior Unsecured Fixed Rate Notes, set to mature in five years, with a 4.50% coupon rate payable semi-annually, according to the bank's regulatory filing.
These bonds, processed through SBI's London branch, are benchmarked against the five-year US Treasury with a 75 basis points spread over the benchmark. They will be listed on both the Singapore Stock Exchange and NSE-IX Exchange at GIFT City as of September 9, 2025. SBI revealed a robust response from global investors, with a final order book exceeding USD 1.1 billion from 85 accounts.
SBI Chairman CS Setty remarked on the positive reception, noting that a peak order book of USD 2 billion facilitated a revision of the price guidance from T+105 bps to T+75 bps. The Notes are expected to receive final ratings of BBB and BBB- from S&P and Fitch, respectively. The issuance highlights global investors' trust in India's economic prospects and SBI's creditworthiness.
(With inputs from agencies.)
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