SBI to raise $1.5 billion from overseas bonds to fund biz expansion

The country's largest lender SBI on Friday said it will raise $1.5 billion from overseas bonds in one or more tranches to fund business expansion.

The Executive Committee of Central board approved "the issuance of Reg-S/ stand alone rule 144A senior unsecured debt up to USD 1.5 billion in multiple tranches or currencies with tenor not exceeding 5.5 years during current year and 2017-18," SBI said in a regulatory filing to stock exchanges.

It also cleared proposal to issue and allot 13.63 crore shares of the SBI to eligible shareholders of SBBJ, SBM and SBT and to the Government of India for shareholding in Bhartiya Mahila Bank in terms of orders issued by Government of India, it said.

The merger process of the associates banks -- State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Patiala (SBP) and State Bank of Hyderabad (SBH) -- will take effect from April 1.

The executive committee of the central board of SBI fixed March 17 as the record date for determining the eligible minority shareholder of SBBJ, SBM and SBT. The government has also approved merger of Bhartiya Mahila Bank with SBI.