India’s largest lender State Bank of India has raised $500 million through a three-year syndicated loan at very fine pricing. This is the first offshore Secured Overnight Financing Rate-linked loan by SBI through its IFSC Gift City branch.
SBI said strong presence in international markets helped it to get a very fine pricing amid ongoing turbulence in financial markets due to geopolitical tensions and rate hike expectations by the US Federal reserve and other central banks across the globe.
The facility is for $400 million with a green shoe-option of $100 million. However, the lender did not disclose the details of pricing.
"The successful launch of syndicated loan at such a fine pricing demonstrates the kind of reputation SBI has created for itself in offshore financial markets," said Ashwini Kumar Tewari, managing director, SBI.
In a statement, the bank said this was another step towards developing IFSC Gift City as an international financial hub while SBI's Gift City branch had become the largest branch in IFSC.
MUFG, Bank of America and JP Morgan were joint lenders for this offering, whereas First Abu Dhabi Bank acted as facility agent.
SBI’s advances in foreign offices rose by 21.35 per cent on a year-on-year (YoY) basis to Rs 4.0 trillion at the end of December 2021 and deposits increased by 16.54 YoY to Rs 1.29 trillion at end of calendar year 2021.