SBI Board Approves Raising Of $2 Billion From Bonds In FY24

The Board of State Bank of India (SBI), the largest lender in India, authorised the long-term issuance of up to $2 billion in debt during the fiscal year 2023-2024. A public offering or a private placement of unsecured notes in US dollars or any other convertible currency will be used to raise money in one or more tranches.

The Central Board's executive committee agreed to a public offering and/or private placement of senior unsecured notes in US dollars or any other convertible currency during the fiscal years 2023-2024. Exchanges were notified of the permission by the bank.

SBI shares increased 0.23% to settle at Rs. 545.25 per share on Tuesday. The stock has decreased by around 11% year to date. SBI raised Rs 3,717 crore last month by issuing a Tier-1 bond with an 8.25% coupon. The sale of the bonds was intended to increase the bank's overall capital base and boost its capital adequacy ratio.

It was SBI's third offering of Tier-1 bonds during the prior fiscal year. With a call option after ten years and then on each anniversary after that, these bonds have a perpetual tenor.

The $1 billion in syndicated social loans raised by the state-run lender earlier in February made them the largest ESG loans ever raised by a commercial bank in the Asia Pacific region. The principal issue's $500 million loan and a greenshoe option for an equal sum.