SBI Lists $500 Million Bonds on NSE-IX at GIFT City

On September 9, 2025, State Bank of India (SBI), the country’s largest lender, announced the successful listing of its $500 million Regulation S bonds on the NSE International Exchange (NSE-IX) at Gujarat International Finance Tec-City (GIFT City). The bond issuance, finalized on September 2, 2025, carries a coupon rate of 4.50% and is also listed on the Singapore Exchange Securities Trading Limited (SGX-ST). This milestone underscores SBI’s robust financial standing and reinforces GIFT City’s growing prominence as an international financial hub. The bonds, issued through SBI’s London branch, attracted significant global investor interest, with a final order book exceeding $1.1 billion across 85 accounts, reflecting strong confidence in India’s economic growth and SBI’s credit quality.

Details of the Bond Issuance

The $500 million Regulation S bonds, issued with a five-year maturity, are benchmarked against the five-year U.S. Treasury note and priced at a spread of 75 basis points (bps) over the benchmark. This tight pricing reflects SBI’s strong market reputation and investor confidence. The bonds carry credit ratings of BBB from S&P and BBB- from Fitch, indicating a stable investment-grade profile. The issuance, facilitated through SBI’s London branch, saw overwhelming demand, with a peak order book of $2 billion, allowing the bank to revise its price guidance from T+105 bps to T+75 bps, optimizing borrowing costs.

The bonds are part of SBI’s strategy to raise funds for loan expansion and strengthen its global financial presence. The dual listing on NSE-IX and SGX-ST enhances liquidity and visibility, attracting a diverse pool of international investors. Citigroup, HSBC, J.P. Morgan, MUFG, SMBC Nikko, and Standard Chartered Bank served as joint book runners, ensuring a smooth execution of the offering. The strong response, with orders from 85 accounts across various geographies, highlights SBI’s appeal as a quasi-sovereign entity closely tied to India’s economic growth.

SBI’s Strategic Focus on GIFT City

The listing of these bonds on NSE-IX at GIFT City is a significant step in SBI’s commitment to supporting India’s vision of establishing GIFT City as a global financial hub. Shri Rama Mohan Rao Amara, Managing Director (IB, GM & T) at SBI, emphasized, “The successful issuance of USD 500 million is a testament to the strong appetite for bonds of SBI and reflects the confidence of global investors in India’s growth story in general and credit quality of the Bank in particular.” He further noted that the NSE-IX listing enhances market visibility, aligning with SBI’s efforts to bolster the GIFT City ecosystem.

GIFT City, located in Gujarat, is designed to rival international financial centers like Singapore and Dubai, offering tax exemptions and relaxed regulatory frameworks to attract global capital. SBI’s bond listing on NSE-IX, following its earlier $500 million syndicated loan through its GIFT City branch in 2022, underscores the bank’s pivotal role in this initiative. The listing also marks a historic milestone, as SBI became the first issuer to raise and list $500 million bonds on NSE-IX after India’s sovereign rating upgrade by S&P in 2025, further enhancing fundraising conditions.

Comparison with Previous Bond Issuance

In November 2024, SBI raised $500 million through five-year dollar bonds at a yield of 5.13%, priced at a spread of 82 bps over the U.S. Treasury yield of similar maturity. This was noted as the tightest spread achieved by the lender at the time, according to banking sources. The September 2025 issuance, with a lower spread of 75 bps and a coupon rate of 4.50%, reflects improved market conditions and investor confidence following India’s sovereign rating upgrade. The tighter pricing underscores SBI’s ability to secure favorable terms in global markets, leveraging its strong credit profile and India’s economic growth narrative.

The November 2024 bonds had a yield of 5.13%, while the current issuance’s lower coupon rate of 4.50% indicates a more competitive borrowing environment. This improvement can be attributed to India’s upgraded sovereign rating and favorable global market dynamics, including expectations of a U.S. Federal Reserve rate cut in September 2025. The success of both issuances highlights SBI’s strategic approach to tapping international capital markets to support its domestic lending operations.

Investor Confidence and Market Impact

The overwhelming response to SBI’s bond issuance, with a peak order book of $2 billion, reflects strong global investor confidence in both the bank and India’s economic prospects. The participation of 85 accounts from diverse geographies underscores SBI’s appeal as a stable, quasi-sovereign issuer. The bonds’ investment-grade ratings (BBB from S&P and BBB- from Fitch) further enhance their attractiveness, offering a balance of yield and security for institutional investors.

The listing on NSE-IX and SGX-ST provides investors with enhanced liquidity options, making the bonds more appealing in secondary markets. This dual listing strategy not only broadens the investor base but also aligns with SBI’s goal of increasing its global financial footprint. The bond issuance is expected to support SBI’s loan growth, particularly in sectors like infrastructure, SMEs, and retail lending, as the bank reported advances of over ₹42.54 lakh crore as of June 2025.

SBI’s Financial Strength

SBI’s financial performance underscores its ability to attract global capital. As of June 2025, the bank reported a deposit base of over ₹54.73 lakh crore, with a Current Account and Savings Account (CASA) ratio of 39.36%. Its home loan portfolio exceeded ₹8.5 lakh crore, commanding a 27.7% market share, while its auto loan portfolio held a 19.03% share. In the April–June quarter of FY26, SBI contributed 43% of the total profits of India’s 12 public sector banks, reporting a net profit of ₹19,160 crore, an 11% increase year-on-year.

The bank’s robust financial metrics, including a market capitalization of ₹7,22,340 crore and a price-to-earnings (P/E) ratio of 10.23, make it a cornerstone of India’s banking sector. SBI’s ability to secure favorable borrowing terms in international markets reflects its strong credit quality and strategic importance to India’s economy. The bond issuance further strengthens its balance sheet, providing liquidity for future growth initiatives.

GIFT City’s Growing Role

The listing of SBI’s bonds on NSE-IX highlights GIFT City’s emergence as a key international financial center. With over $34 billion in bond listings and $68 billion in medium-term notes established, NSE-IX has become a preferred platform for issuers of foreign currency bonds. The exchange’s CEO, V. Balasubramaniam, congratulated SBI on the landmark issuance, noting it as the first after India’s sovereign rating upgrade. GIFT City’s tax incentives and regulatory flexibility make it an attractive destination for global financial transactions, and SBI’s involvement strengthens its position as a hub rivaling Singapore and Hong Kong.

SBI’s prior engagements with GIFT City, including a $500 million syndicated loan in 2022, demonstrate its commitment to leveraging the hub for international fundraising. The bank’s strategic focus on GIFT City aligns with India’s broader goal of enhancing its global financial integration, attracting foreign capital, and supporting economic growth.

Market Outlook and Investor Considerations

The successful bond issuance and listing signal positive prospects for SBI and the Indian banking sector. Investors seeking stable, investment-grade debt instruments may find SBI’s bonds attractive, given their competitive yield and strong credit ratings. The dual listing on NSE-IX and SGX-ST enhances accessibility, while the tight spread of 75 bps reflects favorable market conditions. For SBI shareholders, the bond issuance reinforces the bank’s financial stability and growth potential, potentially supporting stock price appreciation, with shares trading at ₹808.95 on September 10, 2025.

However, investors should remain mindful of global economic factors, including U.S. interest rate policies and geopolitical developments, which could impact bond yields and market sentiment. Consulting financial advisors is recommended to assess the suitability of SBI’s bonds within individual investment portfolios.