State Bank of India Secures $1 Billion Social Loan from MUFG Via Social Loan

State Bank of India has secured a $1 billion (about ₹9,100 crore) 5-year social loan from Mitsubishi UFJ Financial Group (MUFG), marking the first such social loan transaction raised by an Indian bank. 

Deal Structure And Pricing 

As reported by Economic Times, The funding has been arranged through MUFG’s GIFT City branch and carries pricing at 90 basis points above the 3-month SOFR benchmark. The facility is structured as a social loan, where proceeds are ring-fenced for defined social lending objectives rather than general corporate use. 

The loan includes a greenshoe option of up to $500 million and is expected to be syndicated further to other lenders after initial arrangement by MUFG. The syndication process began in early February and is targeted for closure in March 2026. 

Use Of Proceeds Focused on Women Borrowers 

The proceeds from this social loan are intended to support credit to women borrowers and enterprises led by women. Social loans are typically tied to measurable social outcomes, with funds either directly deployed for specified categories or matched against an identified qualifying loan pool. 

ESG Financing Momentum 

Global lenders have been expanding environment, social and governance (ESG)-linked financing programmes, with dedicated targets for sustainable and social lending.  

Such transactions are increasingly being used to channel overseas capital into targeted development and inclusion themes. 

In India, similar purpose-linked fundraising has been more common among non-bank lenders so far, especially for housing and inclusion-focused portfolios. SBI’s transaction signals growing adoption of structured social finance instruments by mainstream banks. 

Read More: SBI Boosts Data Centre Investment Target to ₹4,000 Crore by FY26! 

SBI Share Price Performance  

As of February 06, 2026, at 11:45 AM, SBI share price is trading at ₹1,059 per share, reflecting a decline of 1.35% from the previous closing price.  

Conclusion 

With this $1 billion social loan, SBI adds a new funding channel aligned with inclusion goals, while also diversifying its offshore borrowing base through ESG-linked structures. 

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