The State Bank of India plans to raise up to $2 billion (over Rs 126 billion) by issuing bonds in US dollar or other convertible currency over two fiscals to fund overseas expansion.
“The executive committee of the Central Board.. has approved long term fund-raising in single/multiple tranches up to $2 billion,” State Bank of India (SBI) said in a regulatory filing.
It said the fund-raising will take place through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during 2017-18 and 2018-19.
Last month, the bank’s board had approved raising Rs 80 billion through various sources, including masala bonds, to meet Basel III capital norms.
Masala bonds are rupee denominated specialised debt instruments that can be floated in overseas markets only to raise capital.
Shares of SBI were trading 0.44 per cent higher at Rs 307.55 on BSE
Banks in India have to comply with the global capital norms under Basel III by March 2019. Internationally agreed time frame for the same is January 2019.