SBI Seeks $1.25 Bn Loan In Largest Dollar-denominated Borrowing Of 2024

State Bank of India (SBI) is set to borrow up to USD 1.25 billion, marking the largest dollar-denominated loan from India's financial sector this year, according to media sources. Arranged by CTBC Bank, HSBC Holdings, and Taipei Fubon Bank, the five-year loan offers an interest margin of 92.5 basis points over the Secured Overnight Financing Rate (SOFR).

The funding will be raised through SBI’s branch at Gujarat International Finance Tec-City (GIFT City) for general corporate purposes. The loan is currently being syndicated to additional lenders, according to sources familiar with the deal.

SBI’s move aligns with an increasing trend of Indian financial institutions seeking foreign currency debt this year. Local non-banking finance companies, facing tighter domestic regulations, are turning to dollar-denominated funding. Recently, Cholamandalam Investment and Finance sought a USD 300 million syndicated term loan, and Union Bank of India's Sydney branch is marketing a USD 125 million loan, while Bank of Baroda is raising a USD 750 million borrowing.

India’s dollar loan volume, however, has dropped 27 per cent to USD 14.2 billion this year, largely due to the absence of large company borrowings, as per Bloomberg data. In July, SBI had raised a USD 750 million three-year loan, further underscoring its active role in international fundraising.