SBI is facing redemptions/maturities of USD 3.85bn of hard currency bonds and loans in the next 14 months. This constitutes around 50% of the bank’s hard-currency debt. SBI is also looking to potentially lend USD650mn to the Carmichael coal project in the near future.
In general, syndicate banks’ parallel and/or conditional general purpose lending should be weighed in by end investors when considering investing in a green bond. Refinancing of the upcoming maturities will potentially generate funds to be on-lent to the Carmichael coal mine development. This should exclude some financial institutions’ participation.