BANK NEWS

SBI receives BBB- rating from S&P and Fitch for proposed dollar-denominated bond issue

  • by Psu Connect
  • Date: 10-01-24

The rating agency S&P Global and Fitch on Wednesday gave a grade rating BBB- to the SBI's London branch which has prudently proposed the dollar-denominated bond issuance for its particular branch.

SBI receives BBB- rating from S&P and Fitch for proposed dollar-denominated bond issue

The senior unsecured notes issuance will be part of SBI's $10 billion medium-term note programme as per S&P Global ratings. It has assigned BBB- ratings to the benchmark-sized notes to the London branch of SBI which is predominately proposed to issue the same.  The notes will constitute SBI's direct, unconditional, unsubordinated, and unsecured obligations, as per the Fitch rating agency. The amount to be raised by the bank through the medium-term notes issuance is not immediately known.

The State Bank of India is subsequently planning to raise $300 million through medium-term notes to aid resources for lending to international customers. As per sources, the new issue is likely to be concluded on Thursday and has a green shoe option to raise extra amounts based on market conditions and pricing trends.

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Earlier also, the bank successfully raised $250 million in senior unsecured green floating rate notes, commonly referred to as Green notes, which will be matured on December 29, 2028. The issuance of notes is basically to replace instruments which are coming for maturity.

As per the previous quarters of the fiscal year 2023, the gross advances in global operations recorded 8.11 percent year-on-year growth at Rs 5.27 trillion in September. Also, SBI has raised $1 billion through a syndicated loan, this month.

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The ratings on SBI reflect the bank's dominant market position and its strong deposit franchise. Additionally, the country's robust economic growth supports SBI's loan growth, asset quality, and profitability. Proceeds from the bond issue will be used for general corporate purposes and to meet the funding requirement of SBI'S foreign offices/branches.

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