SBI Seeks $1.25 Bn; Proposed to Become India’s Largest Bank Loan in 2024

State Bank of India (SBI) is set to borrow $1.25 billion. This is the country's largest dollar-denominated bank loan that is coming from the domestic financial sector.

The loan will be disbursed via CTBC Bank, HSBC Holdings Plc and Taipei Fubon Bank, which carries a tenure of 5 years having an interest margin of 92.5 bps, people familiar with the matter said.

India’s largest public sector bank will be raising funds via its branch located in Gujarat’s International Finance Tec-City. The funds will be utilised towards general corporate purposes.

Notably, SBI joined the likes of various domestic borrowers in raising foreign debt. Non-Banking Financial Companies (NBFCs) are increasingly looking forward to raising foreign debts amid strict regulations at home.

Previously, Cholamandalam Investment & Finance Co. raised $300 million, while Bank of India’s Sydney branch is offering a loan of $125 million, which has a tenure of three years. Bank of Baroda is raising $750 million in borrowings.

India’s dollar volume has dropped by 27% to $14.2 billion this year, Bloomberg data said.

During July, SBI raised $750 million, which has a tenure of three years.

SBI Seeks $1.25 Bn; Proposed to Become India’s Largest Bank Loan in 2024