SBI raises $1 bn under 5-year syndicated social loan for ESG funding

Priced at three-month SOFR plus 130 bps; largest such ESG loan by bank in Asia-Pacific; to also use proceeds for affordable housing, SHG lending

The country's largest lender, State Bank of India, has raised $1 billion in its largest syndicated social loan for onward lending to ESG projects, affordable housing and self-help groups (SHGs).  

The deal was the largest Environmental, Social, and Governance (ESG) loan by a commercial bank in the Asia Pacific and the second largest social loan globally.

SBI executives said the five-year loan was priced at the secured overnight financing rate (SOFR) of three months plus 130 basis points. This was all-in cost pricing.

The base size was $500 million with a green shoe option of $500 million. The facility of