BANKING AND ECONOMY
A fund of USD 500 million (over Rs 3,800 crore) was raised by the State Bank of India (SBI) through its IFSC Gift City branch. This is the first offshore USD Secured Overnight Financing Rate (SOFR) linked syndicated loan raised by the country's largest lender. The facility is for USD 400 million-plus USD 100 million as a green shoe option.
SOFR is an alternative risk-free rate, that the financial institutions use to price loans for businesses and consumers which is based on the rates that large financial institutions pay each other for overnight loans.
Gujarat International Finance Tech-city (GIFT) is India's first International Financial Services Centre (IFSC) established under Special Economic Zone Act, 2005.
It is another step toward the bank's commitment to developing IFSC Gift City as an international financial hub, with its Gift City branch becoming the largest in the International Financial Services Centre (IFSC). First Abu Dhabi Bank serves as the facility agent of the bank and the joint lenders of the offering are MUFG, Bank of America, and JP Morgan.