SBI Raises $300 Million Via 3-Year Bond After RBI's ECB Push

State Bank of India has raised $300 million through its London branch by issuing senior unsecured floating-rate notes. The notes carry a three-year maturity and pay a coupon of the Secured Overnight Financing Rate (SOFR) plus 100 basis points, settled quarterly.

SBI is among the first large public sector banks to use this route since the RBI recently announced measures aimed at making External Commercial Borrowings (ECB) more attractive.

The bonds were issued under the Regulation-S framework, with settlement due on 6 July. This route is commonly used for overseas debt sales as it gives issuers access to a wide pool of international institutional investors. SBI had last gone to the overseas bond market in September 2025, when it raised $500 million through a five-year issue at a coupon of 4.5%, its lowest on record at the time.

A Bigger Fundraising Plan Behind This Deal

This bond sale is part of a wider plan. On 12 May, SBI's board had approved raising up to $2 billion through overseas bonds during FY27, with the goal of diversifying funding sources and reaching a broader set of global investors. Separately, the board had also cleared a plan to raise up to ₹60,000 crore domestically in FY27 through long-term bonds and Basel III-compliant Tier-I and Tier-II instruments.

SBI's capital position remains comfortable. At the end of March, its capital-to-risk-weighted assets ratio stood at 15.40%, with a common equity Tier-I ratio of 12.29%.

The Role RBI's ECB Policy Played

This fundraise comes shortly after the RBI's 5 June announcement, under which the central bank agreed to bear the hedging cost on eligible foreign-currency borrowings, commonly routed through the ECB framework, by banks and state-run companies. This brings down the overall cost of raising money overseas and makes such borrowing more appealing than before. The measures are meant to support foreign currency inflows and widen India's external funding options.

Also Read- Fibe Parent Social Worth Technologies Files DRHP For ₹750 Crore Fresh Issue IPO

SBI is not alone in tapping this window. HDFC Bank, Axis Bank and Power Finance Corporation have also raised overseas debt recently to take advantage of the reduced ECB hedging costs. Given the improved economics on offer, more public sector banks and state-owned firms are expected to follow a similar path in the months ahead.