In a bid to fund its overseas expansion public Sector lender State Bank of India (SBI) is all set to raise $ 2 billion about Rs 12,700 crore at current exchange rates.The target is set for the next two fiscal years.
The bank is planning to raise the targeted amount through a public offer and/or the issue of bonds in $ dollars or any other convertible currency.
This decision of long-term fund-raising in single/ multiple tranches has been approved by the Executive Committee of lender’s central board.
“The proceeds from the issue of the senior unsecured notes would be used to support the bank’s overseas operations,” said C Venkat Nageswar, Deputy Managing Director, SBI.
I am hopeful that the bank would be able to raise resources at a relatively cheaper rate as Moody’s had upgraded India’s sovereign rating by a notch in November 2017.
SBI’s presence is spread across 195 foreign offices in 36 countries. Bank’s total overseas assets amounted to Rs 3.6 lakh crore, as of March-end 2017. Its total overseas revenue stood at Rs 10,683 crore in Financial Year 2016-2017.
“We have wholesale and retail banking operations overseas. We participate in local (debt) syndication and help Indian corporates raise foreign currency debt via external commercial borrowings,” said Nageswar.