State Bank of India is looking to raise up to $1.25 billion for a five-year loan, which would be the largest dollar-denominated loan from India’s financial sector in 2024.
CTBC Bank, HSBC Holdings PLC and Taipei Fubon Bank are arranging the five-year loan, which carries an interest margin of 92.5 basis points over the risk-free secured overnight financing rate.
SBI is raising this facility for general corporate purposes through its branch in Gujarat International Finance Tec-City, the country’s newest financial hub.
In 2024, State Bank of India is joining a growing list of local borrowers raising foreign currency loans, with non-banking financial companies (NBFCs) or “shadow banks” leading the way due to tighter domestic regulations.
Despite a surge in activity, India’s dollar debt has fallen 27% this year to $14.2 billion, weighed down by low borrowings from large companies, according to data compiled by Bloomberg.
According to data compiled by Bloomberg, the state bank raised a $750 million, three-year loan in July.
