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State Bank of India Considers Raising $3 Billion


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The board of directors of the State Bank of India (SBI) is scheduled to meet on June 11 to discuss a potential fundraising plan. According to a filing made by the bank with the stock market, SBI is considering raising up to $3 billion through foreign currency bonds issued abroad.

Fundraising Options and Timeline

SBI has stated that the fundraise could be carried out in single or multiple tranches, with a maximum amount of $3 billion. The bank is exploring the possibility of conducting a public offer or a private placement of senior unsecured notes in US Dollar or any other major foreign currency. The fundraising activities are expected to take place during the current fiscal year, which ends in March 2025.

SBI’s Strategy in the Overseas Bond Market

SBI, India’s largest lender by assets, has been actively participating in the overseas bond market to secure resources for funding its loan book abroad. In January of this year, the bank successfully raised $600 million through the issuance of five-year US dollar-denominated bonds, with a coupon rate of 5.1%. This fundraising effort was conducted through its London branch. Prior to that, in December 2023, SBI raised $250 million by issuing green bonds.

Canara Bank’s Capital Raising Plan

In a separate development, Canara Bank, another public sector lender in India, announced that its board has approved a capital raising plan of ₹8,500 crore for the financial year 2024-25. The bank plans to achieve this through the issuance of Tier I or Tier II bonds. Out of the total amount, ₹4,000 crore will be raised through Tier I bonds, while ₹4,500 crore will be raised through Tier II bonds, subject to market conditions and necessary approvals.

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