SBI raises 3-yr funds of $500 mn via IFSC Gift City branch

India's largest public lender State Bank of India (SBI) on Monday said that it has raised 3-year funds of $500 million (over Rs 3,800 crore) through its IFSC Gift City branch.

This is the first offshore USD Secured Overnight Financing Rate (SOFR) linked syndicated loan raised by SBI through its Gift City branch, the lender said in a statement.

The facility is for $400 million, plus $100 million as a green shoe option.

It is another step towards the bank's commitment to develop IFSC Gift City as an international financial hub, the statement added.

Commenting on the fundraising, Managing Director Ashwini Tewari said, ''The successful launch of syndicated loan at such a fine pricing demonstrates the kind of reputation SBI has created for itself in offshore financial markets allowing it to efficiently raise funds even during ongoing turbulence in the markets caused by geopolitical tensions and rate hike expectations by US Federal Reserve and other central banks across the globe."

MUFG, Bank of America and JP Morgan were the joint lenders for this offering whereas Fist Abu Dhabi Bank acted as the facility agent.

Shares of SBI on Monday closed 1.45 per cent lower at Rs 510 apiece amid volatile markets.