New Delhi: State Bank of India (SBI), the country’s largest lender, has successfully raised USD 500 million through bonds to support its loan growth strategy. The issuance was concluded on September 9, 2025, via SBI’s London branch and will be listed on the Singapore Stock Exchange and NSE-IX Exchange, GIFT City.
Details of the Bond Issue
The bank issued Senior Unsecured Fixed Rate Notes with a maturity of five years and a coupon rate of 4.50%, payable semi-annually. The bonds are benchmarked against the five-year US Treasury, priced at a spread of 75 basis points over the benchmark, reflecting strong investor confidence.
SBI reported that the transaction received an overwhelming response, with a final order book exceeding USD 1.1 billion across 85 accounts globally. Peak demand reached USD 2 billion, prompting the price guidance to be revised from T+105 bps to T+75 bps. The notes are expected to carry a final rating of BBB and BBB- from S&P and Fitch, respectively.
Investor Confidence and Global Appetite
SBI Chairman CS Setty highlighted that the successful issuance demonstrates the strong appetite for SBI bonds and a diversified global investor base. The transaction attracted leading fixed-income investors worldwide, underscoring the bank’s credibility and India’s growing presence in offshore capital markets.
“The tight pricing of this issue reflects a reduction in borrowing costs for Indian issuers, thanks to an improved credit profile and sovereign rating upgrades,” Mr. Setty added. He also noted that the bond pricing represents the best-ever spreads for an Indian issuer, signalling global investor confidence in both the country’s growth story and SBI’s creditworthiness.
About SBI
State Bank of India (SBI) is India’s largest public sector bank. With a strong domestic and international presence, SBI provides a wide range of banking and financial services, playing a critical role in India’s economic growth and financial inclusion initiatives.
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