State Bank of India concludes placement of $250 million green bond

The public sector lender State Bank of India (SBI) on Thursday said that it has successfully placed $250 million senior unsecured green floating rate notes, referred to as ‘Green Notes’, which mature on December 29, 2028.

This is part of SBI’s $10 billion medium-term note program and was raised through private placement facilitated by the lender’s London branch.

The bond, issued on a floating rate of 1.20 per cent above the Secured Overnight Financing Rate (SOFR), was listed on the India International Exchange. S&P gave the Green Notes a ‘BBB-’ rating.

SOFR is a benchmark rate for dollar-denominated derivatives and loans, which replaced the London Interbank Offered Rate, or Libor.

Commenting on the occasion, Dinesh Khara, Chairman of SBI, said, 'The successful placement is a testimony to SBI’s commitment towards its sustainability objectives in creating a positive impact on the environment. Green banking and sustainability have long been areas of priority. Towards this end, SBI has enunciated its ESG framework earlier this year. Issuance of green bonds is one of the steps towards building up a green portfolio.'

MUFG acted as the sole green note coordinator and placement agent for this placement.

On Wednesday, the lender said it has raised $1 billion through syndicated social loans which will help in catering to the domestic Environmental, Social, and Governance (ESG) financing market. Out of the $1 billion raised, $250 million was a green shoe.