NEW DELHI: The State Bank of India has sought a loan of $1.25 billion, potentially making it the largest dollar-denominated bank loan from the country’s financial sector in 2024, Bloomberg reported on Friday quoting sources.
The loan is being raised for general corporate purposes through its branch at the Gujarat International Finance Tec-City.
SBI is yet to comment on the matter.
CTBC Bank, HSBC Holdings Plc, and Taipei Fubon Bank are coordinating a five-year loan, which includes an interest margin of 92.5 basis points above the risk-free Secured Overnight Financing Rate (SOFR), according to sources, Bloomberg reported.
State Bank of India is joining a growing list of local borrowers in raising foreign currency debt this year, with non-banking finance companies (NBFCs), or “shadow banks,” leading the charge due to stricter domestic regulations.
Cholamandalam Investment & Finance Co. is the latest Indian NBFC to secure a $300 million syndicated term loan, while Union Bank of India’s Sydney branch is marketing an A$125 million ($81 million) three-year loan. Additionally, Bank of Baroda is in the process of raising a $750 million loan.
However, despite this flurry of activity, country’s total dollar-denominated loan volume has dropped 27% to $14.2 billion in 2024, largely due to the lack of large corporate borrowings, according to Bloomberg data.