SBI concludes $1 billion syndicated social loan facility
This loan is the bank’s inaugural social loan and the first syndicated loan in the past five years.
- Feb 28, 2023,
- Updated Feb 28, 2023 2:16 PM IST
State Bank of India (SBI) has announced the completion of a $1 billion syndicated social loan facility. The deal is the largest ESG (environment, social and governance) loan by a commercial bank in the Asia Pacific and the second largest loan globally. This loan is the bank’s inaugural social loan and the first syndicated loan in the past five years.
The lender said that the issuance witnessed overwhelming participation from banks across Taiwan, Japan, China, and the Middle East, ensuring a full subscription.
The $1 billion facility was arranged through MLABs, MUFG Bank, and Taipei Fubon Commercial Bank. MUFG and Taipei Fubon Commercial Bank are the joint social loan coordinators while MUFG is the lead social loan coordinator for this transaction.
“As a responsible and sustainable organization, we are committed to conducting our business operations with the highest standards of Environmental, Social, and Governance (ESG) practices. Issuance of our first social loan is an embodiment of our commitment to ESG driven by our belief that our long-term success depends not only on our financial performance but also on our ability to make a positive impact on the environment, on society, and on our stakeholders,” said SBI Chairman Dinesh Khara.
Separately, the lender had given loans of as much as Rs 21,000 crore to Adani Group firms. This is half of what is allowed as per the rules. The exposure includes $200 million from its overseas units. Khara had said that the conglomerate was servicing the loans and he doesn’t see them as an ‘immediate challenge’ to whatever the bank has lent.
Finance Minister Nirmala Sitharaman had also reiterated the same. She said that both SBI and Life Insurance Corporation (LIC) have issued detailed statements with respect to their exposure, and said that their exposure was well within permissible limits. "Our regulators are very stringent about governance practices and have kept our markets in prime condition. The Indian banking system is at a comfortable level," she said.
Also read: SBI gave Rs 21,000-cr loans to Adani Group firms: Report
State Bank of India (SBI) has announced the completion of a $1 billion syndicated social loan facility. The deal is the largest ESG (environment, social and governance) loan by a commercial bank in the Asia Pacific and the second largest loan globally. This loan is the bank’s inaugural social loan and the first syndicated loan in the past five years.
The lender said that the issuance witnessed overwhelming participation from banks across Taiwan, Japan, China, and the Middle East, ensuring a full subscription.
The $1 billion facility was arranged through MLABs, MUFG Bank, and Taipei Fubon Commercial Bank. MUFG and Taipei Fubon Commercial Bank are the joint social loan coordinators while MUFG is the lead social loan coordinator for this transaction.
“As a responsible and sustainable organization, we are committed to conducting our business operations with the highest standards of Environmental, Social, and Governance (ESG) practices. Issuance of our first social loan is an embodiment of our commitment to ESG driven by our belief that our long-term success depends not only on our financial performance but also on our ability to make a positive impact on the environment, on society, and on our stakeholders,” said SBI Chairman Dinesh Khara.
Separately, the lender had given loans of as much as Rs 21,000 crore to Adani Group firms. This is half of what is allowed as per the rules. The exposure includes $200 million from its overseas units. Khara had said that the conglomerate was servicing the loans and he doesn’t see them as an ‘immediate challenge’ to whatever the bank has lent.
Finance Minister Nirmala Sitharaman had also reiterated the same. She said that both SBI and Life Insurance Corporation (LIC) have issued detailed statements with respect to their exposure, and said that their exposure was well within permissible limits. "Our regulators are very stringent about governance practices and have kept our markets in prime condition. The Indian banking system is at a comfortable level," she said.
Also read: SBI gave Rs 21,000-cr loans to Adani Group firms: Report