SBI – $1 bn syndicated social loan facility

An $1 billion syndicated social lending arrangement has been completed, according to State Bank of India (SBI). The Loan is the second largest loan in the world and the largest ESG (environment, social, and governance) credit made by a commercial bank in Asia Pacific. The bank’s first Social Loan and its first syndicated loan in the previous five years are both this one.

The lender said that institutions from Taiwan, Japan, China, and the Middle East participated in forcefully in order to ensure a complete subscription.

MLABs, MUFG Bank, and Taipei Fubon Commercial Bank arranged the $1 billion facility. MUFG and Taipei Fubon Commercial Bank are the joint social loan coordinators for this transaction, with MUFG serving as the lead social loan coordinator.

SBI

“As a responsible and sustainable organization, we are committed to conducting our business operations in accordance with the highest standards of Environmental, Social, and Governance (ESG) practices. “The issuance of our first social loan exemplifies our commitment to ESG, which is motivated by our belief that our long-term success is dependent not only on our financial performance, but also on our ability to make a positive impact on the environment, society, and our stakeholders,” said SBI Chairman Dinesh Khara.

Separately, the lender had made loans to Adani Group companies totaling up to Rs 21,000 crore. This is half of what is permitted by the rules. Its overseas units are responsible for $200 million of the exposure. Khara stated that the conglomerate was servicing the loans and that they did not pose a “immediate challenge” to whatever the bank had lent.

Finance Minister Nirmala Sitharaman had also reiterated the same. She stated that SBI and Life Insurance Corporation (LIC) both issued detailed statements about their exposure and stated that it was well within permissible limits. “Our regulators are very strict about governance practises, and they have kept our markets in top shape. The Indian banking system is in good shape.”

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