The biggest lender in the country, State Bank of India (SBI), says it intends to issue long-term bonds to raise up to Rs 20,000 crore this fiscal year. As stated in a regulatory statement on Wednesday, the funding would be raised through either a public offering or a private placing. After a recent meeting, SBI announced that the idea had been approved by its central board.
"The Central Board at its meeting held today accorded approval for raising long-term bonds up to an amount of Rs. 20,000 crore through a public issue or private placement, during FY25," it said. SBI properly raised Rs 5,000 crore earlier this year in January the bonds with an 8.34 percent coupon rate. In the last financial year, the bank raised a total of Rs 20,000 crore by selling 15-year infrastructure bonds.
Additionally, SBI's London branch secured $100 million earlier this month by selling three-year senior unsecured floating-rate bonds, with a spread of 95 basis points above the secured overnight financing rate (SOFR).
As previously reported by Business Standard, the bank has also initiated discussions with market participants to raise approximately Rs 10,000 crore ($1.20 billion) through infrastructure bonds. This will be the bank’s first bond issuance and the country's first infrastructure bond sale for the financial year.
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