SBI raises $1 bn via Syndicated Social Loan

New Delhi: State Bank of India (SBI) on Wednesday said it has raised $1 billion or (about Rs 8,300 crore) to cater to the domestic ESG financing market.

The bank has concluded the issuance of $1 billion ($750 million and green shoe of $250 million) through Syndicated Social Loan, SBI said in a regulatory filing. The loan book was closed on January 2, 2024, it said. Last year too, the country's largest lender had raised $1 billion syndicated social loan. The fund raised would cater to domestic ESG (Environmental, Social and Governance) financing market.

The funds were raised through two tenures: a three-year and a five-year loan. These funds were raised at 80 basis points and 100 basis points over the secured overnight financing rate (SOFR), respectively. SOFR is a benchmark rate for dollar-denominated derivatives and loans, which replaced the London Interbank Offered Rate or Libor. During the second quarter ended September 30, 2023, the bank reported an 8 per cent increase in the net profit to Rs 14,330 crore.