State Bank of India (SBI) is planning to raise up to INR126bn ($2bn) by issuing bonds in US dollar or other convertible currency over the next two fiscal years.
In a stock exchange filing, the Indian lender stated that its executive committee has approved the long term fund raising in single or multiple tranches.
The fund-raising is expected to take place through a public offer and/or private placement of senior unsecured notes in any convertible currency during 2017-18 and 2018-19. The issue will be issued under Regulation S/144A rules.
The Indian banking major intends to use the new funding to support its overseas operations. Currently, it has an overseas presence in 36 countries with 195 foreign offices.
At the end of the last fiscal year in March 2017, SBI had total overseas assets of nearly INR 3600bn.
In August 2016, the board of SBI approved the merger of the bank with its five associate banks and Bharatiya Mahila Bank (BMB).
The five associate banks of SBI are State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. The merger became effective on 1 April 2017.