State Bank of India (SBI) has extended the first Secured Overnight Financing Rate (SOFR) linked external commercial borrowing (ECB) to Indian Oil Corporation (IOCL). With this $100 million ECB deal, which is for five years, SBI and IOCL reached an important milestone in LIBOR (London Inter-Bank Offered Rate) transition.
It is the first SOFR deal in the ECB space and the transaction demonstrates SBI's position as a leader in aligning its systems and processes to embrace Alternate Reference Rates (ARRs). IOCL, by availing the first SOFR linked ECB, will set the pace for smooth transition by Indian corporates to the ARR mechanism.
SBI is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.
