The State Bank of India (SBI), the country’s largest lender, has announced plans to raise up to Rs 20,000 crore in the current fiscal year by issuing long-term bonds. This fundraising will be executed through either a public issue or private placement.
In a regulatory filing on Wednesday, SBI disclosed that its central board had approved the proposal during a recent meeting. “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,” the bank stated.
Earlier this year, in January, SBI raised Rs 5,000 crore through perpetual bonds with an 8.34 percent coupon. During the last financial year, the bank raised a total of Rs 20,000 crore through the sale of 15-year infrastructure bonds.
Additionally, through its London branch, SBI secured $100 million earlier this month by selling three-year senior unsecured floating-rate bonds. These bonds were sold at a spread of 95 basis points above the secured overnight financing rate (SOFR).
As reported by Business Standard, the bank has also begun discussions with market participants to raise approximately Rs 10,000 crore ($1.20 billion) through infrastructure bonds. This will mark the bank’s first bond issuance and the country’s first infrastructure bond sale for the financial year.
