SBI garners $1 billion from overseas to cater to ESG financing market
The fund raised by SBI would cater to domestic ESG (Environmental, Social and Governance) financing market. File
| Photo Credit: The Hindu
State Bank of India (SBI) on January 3 said it has raised $1 billion or (about ₹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% increase in the net profit to ₹14,330 crore.
The net interest income (NII) of the State Bank of India jumped 12.3% to ₹39,500 crore compared to the same period last year.
From an asset quality perspective, its gross non-performing assets ratio was at 2.55% as of September 30, improving from 3.52% in the year-ago period and 2.76% in the first quarter of the current fiscal.
