State Bank of India raised $500 million by issuing bonds through its London branch, the bank announced on Thursday. The bonds carry a coupon rate of 5.25% and are benchmarked against the 5-year US Treasury with a spread of 88 basis points. The issuance attracted orders totaling $2.46 billion, reflecting strong investor demand, according to livemint.com.
The bonds are classified as 'Regulation S' instruments, which exempts them from US Securities and Exchange Commission registration requirements and allows issuance outside the United States. The bonds will be listed on the Singapore Exchange Securities Trading Limited (SGX-ST), India International Exchange (India INX), and NSE International Exchange (NSE-IX). The transaction received overwhelming interest from investors across geographies, the bank stated.
This bond issuance adds to the growing trend of Indian banks tapping international debt markets to diversify funding sources and manage liquidity. The spread of 88 basis points over the US Treasury indicates competitive pricing in a market where sovereign and quasi-sovereign issuers are actively raising capital. The strong subscription, with orders nearly five times the issue size, underscores the appeal of Indian financial institutions in global fixed income markets.
The bonds will be listed on SGX-ST, India INX, and NSE-IX, enabling trading across multiple international platforms, as per the bank's statement on August 13, 2026. This issuance marks one of the significant overseas bond deals by an Indian bank this year.