The State Bank of India (SBI), the country’s largest lender, has successfully raised $500 million through 5-year dollar bonds from international investors. The issue was priced at 75 basis points (bps) above US Treasury yields, giving a coupon rate of 4.5%. This is the tightest pricing ever achieved by an Indian issuer for such bonds.
This fundraising came shortly after Standard & Poor’s upgraded India’s sovereign rating from ‘BBB-’ to ‘BBB’, which improved investor confidence. Following the upgrade, SBI’s secondary bonds also saw a tightening of spreads by nearly 9 bps, helping the bank lower its borrowing cost.
The bond issue attracted over $1.1 billion in orders from 85 accounts, though SBI decided to retain the target amount of $500 million. The deal was oversubscribed, reflecting strong demand from investors across Asia, West Asia, and Europe.
SBI Chairman Challa Sreenivasulu Setty said the success highlights global confidence in India’s growth story and SBI’s credit strength. He added that the pricing sets a new benchmark, showing lower borrowing costs for Indian issuers post the rating upgrade.
Siddharth Sharma of HSBC India noted that the deal’s success reflects India’s robust financial system and investor trust, as the spreads were tightened by 30 bps during the process.
For comparison, SBI had raised $500 million in November 2024 at T+82 bps and $600 million in January 2024 at T+117 bps, making the current deal the best-priced so far.
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SBI share price (NSE: SBIN) was trading at ₹809.70, up ₹5.80 (0.72%) on September 3, 2025, at 10:58 am IST. The stock opened at ₹804.30, touched a high of ₹811.45, and a low of ₹803.00 during the session. SBI has a market capitalisation of ₹7.44 lakh crore, a P/E ratio of 9.10, and offers a dividend yield of 1.96%. Over the past 52 weeks, the stock has traded between a high of ₹875.45 and a low of ₹680.00. The bank’s quarterly dividend stands at ₹3.97 per share.
SBI’s latest $500 million bond issue marks a milestone for Indian issuers, achieving record-low spreads in global markets. It reflects growing investor confidence in India’s economy and SBI’s strong financial position after the sovereign rating upgrade.
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Published on: Sep 3, 2025, 11:04 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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