SBI raises $250 bn through green bond to fund sustainable projects

New Delhi State Bank of India (SBI) on Thursday said it has raised $250 million through issuance of the Green Notes to fund sustainable projects.

The bank has concluded the successful placement of $250 million senior unsecured Green floating rate notes, referred to as 'The Green Notes', SBI said in a statement.

This issuance, maturing on December 29, 2028, is part of SBI's $10 billion medium-term note programme and was conducted through a private placement facilitated by its London branch, it added.

Green Notes were issued on a floating rate basis of 1.20 per cent above the Secured Overnight Financing Rate (SOFR) and have been listed on the India International Exchange, the statement said.

Continuing its commitment towards sustainable development, proceeds will be allocated to eligible green projects according to the Bank's ESG Financing Framework, it added.

SBI chairman Dinesh Khara said: "The successful placement is testimony to SBI's commitment towards its sustainability objectives in creating a positive impact on the environment. Green banking and sustainability have long been areas of priority".

Towards this end, SBI has enunciated its ESG framework earlier this year.

Issuance of green bonds is one of the steps towards building up a green portfolio, he said.