State Bank of India returns to dollar debt market, bankers see strong demand
State Bank of India is returning to the dollar bond market to raise at least $500 million, with potential for up to $1 billion. The move follows a recent Reserve Bank of India swap facility that has made overseas borrowing more attractive for Indian lenders.
Why it matters
This indicates a trend of Indian financial institutions leveraging international debt markets to capitalize on favorable borrowing conditions.
State Bank of India, the country’s largest lender, is returning to the public dollar bond market after nearly a year and is expected to see strong demand for its planned five-year issue, three merchant bankers said on Tuesday (August 11, 2026).
The bonds will be issued through SBI’s London branch, with initial price guidance set at roughly 120 basis points over U.S. Treasuries.
The issue comes at a time when Indian banks are making a beeline for dollar issues after the Reserve Bank of India in June a opened a swap facility, making overseas borrowing cheaper.
SBI is expected to raise at least $500 million, although the final size will depend on investor demand.
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