SBI raises $500 million offshore borrowing

India’s largest commercial bank, State Bank of India (SBI), has raised 3-year funds worth $500 million through a syndicated loan facility, the bank announced on April 18. The money was raised through the GIFT City (Gujarat International Finance Tec-City) branch at the International Financial Services Centre (IFSC).

“The successful launch of the syndicated loan at such a fine pricing demonstrates the kind of reputation SBI has created for itself in offshore financial markets, allowing it to efficiently raise funds even during the ongoing turbulence in the markets caused by geopolitical tensions and rate hike expectations by the US Federal Reserve and other central banks across the globe,” said Ashwini Kumar Tewari, Managing Director, SBI.

It is the first offshore USD SOFR-linked syndicated loan by SBI through the GIFT City branch, the bank said in a release. The facility is for $400 million, with $100 million as a green shoe option.

“It is another step towards SBI’s commitment to develop the IFSC GIFT City as an international financial hub. SBI’s GIFT City branch has become the largest branch in IFSC,” stated the release.