Taking advantage of the liquidity in global markets, State Bank of India has raised $600 million through offshore bonds at a record low rate of 1.8%.

The 5.5-year bonds were raised by SBI’s London branch.

The proceeds from the bonds will be used to meet dollar requirements of Indian clients overseas.

Though SBI had initially planned to raise $500 million, it decided to raise its offering as there was strong interest in the issue.