SBI's Landmark $500 Million Formosa Bond Listing Boosts GIFT City's Global Standing

In a significant stride for India's financial prowess and global integration, the State Bank of India (SBI) has successfully listed its impressive $500 million Formosa bonds on the India International Exchange (NSE IX) at GIFT City, Gandhinagar. This landmark event not only underscores SBI's strategic foresight but also marks a pivotal moment for GIFT City, solidifying its ambition to become a world-class international financial services center (IFSC).

These 5-year Formosa bonds, denominated in US Dollars and issued in Taiwan, carry a competitive coupon rate of 5.75% per annum.

The funds raised through this issuance are earmarked to bolster SBI’s general corporate requirements, further strengthening its operational capabilities and market position. Initially listed on the Taipei Exchange (TPEx), their subsequent listing on NSE IX provides an additional, prestigious platform for global investors.

What makes this listing particularly noteworthy is that it represents the first-ever Formosa bond listing by an Indian entity on the NSE IX.

This pioneering move by India's largest public sector bank sets a precedent for other Indian corporations seeking to tap into international capital markets via GIFT City. It showcases the growing sophistication and attractiveness of India's financial ecosystem.

Arun Kumar Srivastava, Chief General Manager, International Banking Group at SBI, highlighted the significance of this listing, stating that it reinforces the bank's commitment to exploring diverse funding avenues and leveraging the robust infrastructure offered by GIFT City.

He emphasized that this initiative aligns with SBI's broader strategy to enhance its global presence and support India's economic growth.

The listing is a component of SBI’s larger $10 billion Medium Term Note (MTN) programme, a testament to the bank's long-term vision for international fundraising.

This isn't SBI's first foray into listing on international platforms through GIFT City; the bank has previously listed its Green Bonds and Additional Tier 1 (AT1) bonds on NSE IX, demonstrating a consistent strategy to leverage the IFSC's advantages.

For GIFT City, this development is a powerful endorsement of its burgeoning status as a global financial hub.

By providing a platform for such significant international debt issuances, NSE IX is attracting more global capital flows and offering unparalleled opportunities for both issuers and investors. It signifies a maturation of India’s capital markets, allowing seamless access to global liquidity and investment avenues.

This historic listing by SBI is expected to pave the way for more Indian and international entities to consider NSE IX at GIFT City for their capital-raising needs.

It's a clear signal that GIFT City is rapidly evolving into a dynamic and competitive financial gateway, capable of facilitating complex international transactions and bolstering India's position on the global financial map.