SBI announces successful pricing of its USD denominated green bond for USD 100 million
*USD 100 million 2-years Regulation S only Floating Rate Note issuance at 3M Libor + 80 Bps.
*The bond issuance was done through private placement.
*The first USD bond issued by an Indian public sector bank in this calendar year.
*First Green Bond Issued by an Indian public sector bank in this fiscal year.
*Issued off SBI’s Medium Term Note (MTN) Programme, and also listed on the Singapore Exchange Securities Trading Limited (Singapore SGX)
*Nimble footed transaction executed during a period of currency and market volatility
India’s biggest public sector bank, State Bank of India on 26th March 2020, priced its third iteration of Green Bonds. SBI has already two Climate Bond Initiative Certified Green Bonds issuances aggregating USD 700 Million. Continuing its commitment towards sustainable development, the Bank raised USD 100 Million Floating Rate Notes at a coupon rate of 3M Libor + 80 Bps. The bonds will be issued through SBI’s London Branch as of 31 March 2020 and shall be listed on Singapore SGX.
The issuance was done in very challenging market conditions. The successful issuance demonstrates the strong investor base SBI has created for itself in offshore debt markets allowing it to efficiently raise funds from world’s leading fixed income investors, even during periods of heightened currency and rates volatility. Fitch has assigned final rating of BBB- to the Notes.
Rajnish Kumar, Chairman, SBI said, “It is an extremely important transaction for India especially in this critical situation. We believe this issuance will reassure confidence in India’s strength in the international bond market. We at SBI have adopted the green bond framework with an objective to create a positive impact on the environment and this transaction is yet another step as part of our sustainability journey”.
MUFG Securities acted as arranger for this issuance.