State Bank of India, the country's commercial lender, on Wednesday said its board has given approval to raise USD 2.5 billion (about Rs 17,000 crore) through bonds to fund expansion of overseas business.
The executive committee of the central board in its meeting held on 24th April 2019 has approved the fund raising proposal, SBI said in a regulatory filing.
The public sector lender will raise the fund in single or multiple tranches through a public offer or private placement of senior unsecured notes in US Dollar or any other convertible currency.
"Long term fund raising in single/multiple tranches up to USD 2.5 billion through a public offer and / or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2019-20," SBI informed the exchange.
A meeting of the board of directors of SBI will be held on Friday, April 26, 2019, at Mumbai, to consider audited financial results and dividend for the year ended on March 31, 2019.
Last month, SBI's central board approved extension of validity for raising equity capital of up to Rs 20,000 crore till March 31, 2020. The bank will raise the fund by the way of public issue or private placement, including Qualified Institutions Placement (OIP), Global Depository Receipt (GDRs), American Depository Receipt (ADRs).
Meanwhile, shares of SBI closed trade at Rs 310.70 apiece, up 1.65 per cent, on the Bombay Stock Exchange on Wednesday.
Edited by Chitranjan Kumar