SBI garners USD 1 billion from overseas to cater to ESG financing market

State Bank of India (SBI) on Wednesday said it has raised USD 1 billion or (about Rs 8,300 crore) to cater to the domestic ESG financing market.

The bank has concluded the issuance of USD 1 billion (USD 750 million and green shoe of USD 250 million) through Syndicated Social Loan, SBI said in a regulatory filing. The loan book was closed on January 2, 2024, it said.

Last year too, the country's largest lender had raised USD 1 billion syndicated social loan. The fund raised would would cater to domestic ESG (Environmental, Social and Governance) financing market.

The funds were raised through two tenures: a three-year and a five-year loan. These funds were raised at 80 basis points and 100 basis points over the secured overnight financing rate (SOFR), respectively.

SOFR is a benchmark rate for dollar-denominated derivatives and loans, which replaced the London Interbank Offered Rate or Libor. During the second quarter ended September 30, 2023, the bank reported an 8 per cent increase in the net profit to Rs 14,330 crore. The net interest income (NII) of the State Bank of India jumped 12.3 per cent to Rs 39,500 crore compared to the same period last year.

From an asset quality perspective, its gross non-performing assets ratio was at 2.55 per cent as of September 30, improving from 3.52 per cent in the year-ago period and 2.76 per cent in the first quarter of the current fiscal.

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