State Bank of India is set to raise funds as part of its $10 billion medium-term note (MTN) programme. This comes after it recently mobilised $250 million through green notes to fund sustainable projects.

The latest fundraising plan, which will reportedly be to the tune of $300 million, has got an investment grade rating BBB- from S&P and Fitch.

S&P said in a statement that the senior unsecured notes issue will be part of the lender’s $10 billion MTN programme.

“S&P Global Ratings on Wednesday assigned its ‘BBB’ long-term issue rating to benchmark-sized notes that the London branch of State Bank of India (SBI) proposes to issue,” the agency disclosed.

In a separate statement, Fitch said it has given an expected rating of ‘BBB-(EXP)’ to the proposed senior unsecured notes issuance by the bank’s London branch.

“The notes will constitute SBI’s direct, unconditional, unsubordinated and unsecured obligations and will at all times rank pari passu among themselves and with all of SBI’s other unsubordinated and unsecured obligations,” Fitch added.

The $250 million issuance, maturing on December 29, 2028, was conducted through private placement facilitated by its London branch.

SBI had said it will be continuing with its commitment towards sustainable development, and that proceeds from the issue will be allocated to eligible green projects. This will be in line with the bank ESG financing framework.

SBI chairman Dinesh Khara had then pointed out that the successful placement is testimony to its commitment towards the sustainability objectives in creating a positive impact on the environment.