SBI Raises $250 Million through Green Bonds Issued via London Branch

5 Jan 2024 , 10:05 AM

The largest lender in the nation, State Bank of India, has raised $250 million by issuing green bonds in a private placement that was made possible by its London branch.

According to a statement from the lender, the bonds, which were issued as a part of SBI’s $10 billion medium-term note programme, will reach maturity on December 29, 2028.

‘The placement’s success is evidence of SBI’s dedication to achieving its sustainability goals and improving the environment. Sustainability and green banking have traditionally been top priorities, according to SBI Chairman Dinesh Khara.

Eligible green projects will receive the proceeds of the issuance in line with the bank’s Environmental, Social, and Governance (ESG) Financing framework.

Senior unsecured green floating rate notes with an S&P rating of BBB- are the bonds in question. The securities were priced at 1.20% over the global benchmark for pricing issuances denominated in dollars, the Secured Overnight Financing Rate (SOFR).

Mitsubishi UFJ Financial Group Inc. organised and placed SBI’s green bond offering. The India International Exchange now lists the bonds.

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