State-owned lender State Bank of India (SBI) on Tuesday said the board has approved raising up to $2 billion via long-term debt.

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In an exchange filing, SBI said, "To examine the status and decide on long-term fund raising in single/multiple tranches up to $ 2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2023-24.”

Unsecured notes are a type of fixed-interest investment issued by a company whereby it promises to pay regular interest payments and return the capital at the end of the investment term. There is no security offered for the investment.

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Earlier this month, the state-owned bank kept its lending rates unchanged across tenures. Last month, Dinesh Khara of SBI told CNBC-TV18 that the debt capital market is very shallow. There is decent traction in deposits & loans. However, capacity utilisation is improving leading to demand for working capital loans.

Stocks of SBI settled at Rs 545.85 apiece, up over 0.30 percent, when the market closed today, April 18, 2023. However, the stock has remained under pressure this year as it has been down over 11 percent to date.