State Bank of India has raised $500 million through a five-year Regulation S bond issue via its London branch at a 5.25% coupon. Strong demand from 145 investors helped SBI tighten the spread to 88 basis points over US Treasuries from initial guidance of 120 bps. | Photo Credit: RAMAKRISHNA G

State Bank of India (SBI) has successfully priced a $500 million Regulation S bond issue through its London branch, showcasing strong global investor confidence in India’s largest lender despite an uncertain international macroeconomic environment.

The five-year bond carries a coupon of 5.25 per cent and was priced at a spread of 88 basis points (bps)over the 5-year US Treasury benchmark. The transaction’s standout feature was the sharp tightening in pricing. SBI initially launched the issue with guidance of around 120 basis points over US Treasuries, but strong investor demand enabled the bank to compress the spread by 32 basis points to 88 bps at final pricing.

The issue attracted a peak order book of $2.46 billion from 145 investors, nearly five times the issue size, highlighting the appetite among global fixed-income investors for SBI paper. The bonds will be listed on SGX-ST, India INX and NSE-IX.

In June 2026, HDFC Bank had raised $750 million through a five-year overseas bond issue at a spread of about 90 basis points over US Treasuries after launching at 120 bps guidance, reflecting a similar trend of strong demand in the market.

Commenting on the transaction, SBI Chairman CS Setty said the successful fund raise demonstrates the bank’s diversified offshore investor base and the confidence global investors continue to place in both SBI’s credit profile and India’s growth story. He added that the issue achieved the tightest spread among Indian public-sector bond issuances since the RBI’s swap window announcement, helping contain borrowing costs for Indian issuers.

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