State Bank of India (SBI) has issued $250 million senior, unsecured, green floating rate notes through private placement facilitated by its London branch, set to mature on December 29, 2028.

The bond, issued on a floating rate of 1.20% above the Secured Overnight Financing Rate (SOFR), was listed on the Global Securities Market of the India International Exchange.

The bond issuance is part of SBI’s $10 billion medium-term note program.

The proceeds of the issuance will be allocated towards eligible green projects in accordance with the bank’s Environmental, Social, and Governance (ESG) Financing framework.

SBI’s green bond issuance was coordinated and placed by Mitsubishi UFJ Financial Group.

The issuance was approved by the Banl’s board back in April 2023.

Recently, SBI signed a $165 million line of credit from the World Bank to finance grid-connected rooftop solar projects in the residential and institutional sectors.

SBI also signed a €200 million (~$220 million) line of credit from the European Investment Bank to support India’s climate action projects, it said in a regulatory filing. The loan document will become operational once the necessary approvals are secured.

Just last week, the German development bank Kreditanstalt für Wiederaufbau (KfW) granted a Є70 million (~$76 million) loan to SBI to help refinance solar projects with a total capacity of 180 MW as part of phase III.

In 2022, SBI received a low-interest loan of €150 million (~$150.66 million) from Germany-based bank KfW to finance solar projects in India. The loan aimed to fund innovative technologies such as automated dry cleaning of solar modules to reduce water consumption.

Further, in 2021, SBI approved ₹319.18 billion (~$4.26 billion) in renewable energy project finance to fund over 752 renewable energy projects with a total installed capacity of 13.8 GW. The same year, SBI, along with the EIB, launched a €100 million (~$121.63 million) initiative to boost sustainability financing.