SBI enters social loan market, raises USD 1 bln from overseas markets

Mumbai: State Bank of India on Tuesday said that it has concluded a landmark USD one billion syndicated social loan, making it the largest ESG loan raised by a commercial bank in the Asia Pacific market. In a statement, the bank said that the loan is of USD 500 millions of primary issue and an equal amount in green shoe option. It is also the maiden such issuance from the nation's largest lender.

Deal is the largest ESG loan by a commercial bank in Asia Pacific: SBI

The deal is the largest ESG (Environmental, Social and Governance) loan by a commercial bank in the Asia Pacific and the second largest social loan globally, SBI added. The issue got overwhelming participation from banks across Taiwan, Japan, China, and the Middle East ensuring a full subscription, including USD 500 million of the green shoe option.

Transaction significant for SBI & domestic ESG financing mkt

At current exchange rates, USD one billion is worth more than Rs 8,200 crore. The transaction is significant for SBI and the domestic ESG financing market since it is the largest ESG loan by a commercial bank in the region. It is the maiden social loan from the bank and also the first syndicated loan in the past five years.

The bank said that the issue was arranged by MUFG Bank, and Taipei Fubon Commercial Bank. SBI Chairman Dinesh Khara said that the bank is committed to conducting its business operations with the highest standards of ESG practices.

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