State Bank of India (SBI) on Saturday announced the launch of a $500 million (about Rs 4,597 crore) syndicated social term loan facility, focused exclusively on women empowerment with a greenshoe option.

This syndicated transaction is a milestone for both the bank and the global ESG financing landscape for the cause of women empowerment, the country’s largest bank said in a statement. 

The state-owned bank said the facility is aimed at accelerating social impact by promoting gender equality and supporting initiatives that reduce the gender gap.

"It contributes to the United Nations’ Sustainable Development Goal (SDG) 5 – 'Achieve Gender Equality and Empower All Women and Girls'," it said.

The transaction is the first of its kind by SBI, aimed at supporting gender equality and inclusive economic growth.

"On this International Women’s Day, we are proud to announce this landmark social loan, reflecting our deep commitment to fostering women's empowerment as a cornerstone of sustainable development,” SBI chairman CS Setty said.

The SBI chairman also stated that true progress depends not only on economic growth but also on our ability to drive positive social change, empower women, and build an inclusive society for all stakeholders. 

This is expected to be the largest gender-themed loan globally, representing a landmark initiative in sustainable finance by an Indian financial institution, the lender said.

MUFG acted as the original mandated lead arranger, underwriter and bookrunner, as well as the sole social loan coordinator for the transaction.