State Bank of India has raised $500 million through a five-year bond offering targeted at global investors, marking a strong turnaround in its offshore funding strategy amid heightened demand and improved credit sentiment for Indian debt.
State Bank of India has raised $500 million through a bond sale aimed at overseas investors, tapping markets through its London branch as it continued to broaden its funding base. The lender said the five-year Regulation S notes were priced at a 5.25% coupon and carried a spread of 88 basis points over the benchmark 5-year US Treasury.
The bank said the securities will be listed on SGX-ST, India INX and NSE-IX. According to the statement, demand was strong across regions, with the order book peaking at $2.46 billion from 145 investors, underscoring continued interest in high-grade Indian bank debt even as global borrowing conditions remain uneven.
SBI chairman C.S. Setty said the outcome showed investors’ appetite for the bank’s paper and reflected confidence in India’s growth prospects and SBI’s credit profile. The deal was arranged by BNP Paribas, Citigroup, Crédit Agricole CIB, Emirates NBD Bank PJSC, HSBC, MUFG and Standard Chartered.
The latest transaction also fits a wider pattern of Indian issuers seeking funding abroad after a period of tighter global monetary conditions. Recent reporting by The Economic Times and Business Standard said Indian borrowers have benefited from improved credit sentiment and, in SBI’s case, from the strongest pricing levels seen for the bank in offshore markets.
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