SBI, India’s largest state lender, announced on Monday that it has generated $500 million in three-year funding through its IFSC Gift City branch. SBI said in a statement that this is the first offshore USD Secured Overnight Financing Rate (SOFR) connected syndicated loan it has raised through its Gift City office.
Despite continuous instability in financial markets due to geopolitical issues and predictions of rate hikes by the US Federal Reserve and other central banks across the world, SBI said its strong presence in international markets enabled it to secure extremely precise pricing.
The facility will cost $400 million, with an additional $100 million available as a greenshoe option. The lender, on the other hand, did not provide pricing information.
SBI raises $500 million offshore loan through IFSC Gift City branch
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The bank said in a statement that this was another step toward IFSC Gift City being an international financial center and that SBI’s Gift City branch had become the largest in the IFSC. The bank’s commitment to developing IFSC Gift City as an international financial center has taken another step forward, according to the statement.
The joint lenders for this issue were MUFG, Bank of America, and JP Morgan, with First Abu Dhabi Bank acting as the facility agent. During tumultuous markets, SBI’s shares fell 1.45% to Rs 510 per share on Monday.
SBI recently announced a ten-basis-point increase in the marginal cost of lending rate (MCLR) on loans. The tenor-based MCLR interest rates go into effect on April 15, 2022. Existing and future borrowers may see their EMIs for home, automobile, and other loans rise as a result of this.
