SBI to raise $3 billion through senior unsecured notes in FY26

Synopsis

State Bank of India plans to raise funds. The board approved raising up to $3 billion through senior unsecured notes. This will happen during fiscal year 2026. The bank can raise funds in single or multiple tranches. SBI may issue notes in US dollars or other major foreign currencies. Earlier, in 2024, SBI raised $1.2 billion through bond issues.

Mumbai: State Bank of India (SBI), the country's largest government-owned asset by market capitalisation, on Tuesday got board approval to raise up to $3 billion through the issuance of senior unsecured notes during FY26.

The enabling approval allows the bank, which has a share of nearly a fifth of the nation's outstanding bank credit, to raise long-term funds - either in single or multiple tranches.

The fund-raising will be through a public offer or private placement of notes denominated in US dollars or other major foreign currencies, the bank said in a regulatory filing on Tuesday.

In 2024, SBI had raised $1.2 billion through three foreign currency bond issues. The latest of this issuance was in November 2024, when it raised $500 million in senior unsecured fixed-rate notes, maturing in five years, with a 5.125% coupon payable semi-annually.

The bank also has the board approval to raise equity capital of up to ₹25,000 crore. SBI chairman CS Setty had said earlier that the approval is enabling in nature and will depend on market conditions.

The bank last raised equity capital from the market in 2017. Then it had raised ₹15,000 crore through a QIP.

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