SBI in international bond market to raise nearly $500 mn in green bonds

The nation's largest lender State Bank of India Wednesday raised the first tranche of USD 650 million through a maiden green bond offering, which is part of its planned USD 3 billion in such funds for onward lending to green projects.

The five-year dollar money is priced at the US treasury plus 165 basis points, while from for an British investor the coupon will be 3 Libor plus 151 bps.

"SBI has successfully priced our maiden green bonds, a five-year money for USD 650 million at T+ 165 bps, corresponding to 3L + 151 bps approximately," a merchant banking source official said.

The money is raised through the bank's London branch, the source added.

With this issue SBI will become compliant with the global standards as prescribed by the Climate Bonds Initiative, a global not-for-profit investor-focused organisation.

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