State Bank of India (SBI) is reportedly planning to raise up to INR113bn ($1.5bn) in long term capital from international bond markets in FY2021.

The central board of state bank has fixed a meeting on 11 June 2020 to review their decision on fundraising plans.

The government-owned lender is expected to raise the funds either through public offering and/or private placement of senior unsecured notes in dollars or other convertible currencies.

Raising money from global markets is said to be commonplace for lenders, including SBI.

The capital raise is used for lending and repayment of financial instruments maturing in the same year, the report added.

In March, SBI already raised $100m through green bonds issued through SBI’s London branch at a coupon of three-month London Inter-bank offered rate (LIBOR).

The lender has two Climate Bond Initiative Certified Green Bond issuances, amounting to $700m.

As at the end of 2019, SBI’s foreign office recorded $40bn in loans, and over $15bn in deposits, according to its Q3FY20 results statement.

SBI has authorised $12.91bn in Foreign Currency Loans to Indian corporates, and $10.36bn loans to overseas entities, according to its annual report for FY19.

In a regulatory filing, SBI said: “To examine the status and decide on long term fundraising in single/multiple to $1.5bn under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2020-21.”