The State Bank of India, the country’s largest commercial lender, has increased the size of its minimum term note (MTN) programme to $5 billion from the earlier $2 billion.

The funds would be raised from overseas markets, including London, and would be listed at the Singapore Stock Exchange, SBI informed the Bombay Stock Exchange (BSE). “The programme was updated and its scope enlarged to include raising of funds for capital purposes and for the inclusion of Nassau or other foreign offices, including London, for the purpose of issuance of notes in October 2006,” the bank said. SBI launched the programme in 2004 for $1billion and enlarged it to $2 billion in August 2005, it said.

ICICI Bank is selling two-year, euro-denominated floating rate notes (FRN) in a benchmark sized deal, which is likely to price in London trading hours, a source close to the deal said today. The guidance on the FRN has been set at 40 to 42 basis points above Euribor, the source said. Citigroup, BNP Paribas, Deutsche Bank and HSBC are handling the issue.

Earlier this month, the bank held investor presentations in Edinburgh, Glasgow and London. The source said investor response was “very good” and pricing was likely 'in the next 2-3 hours.' ICICI Bank has already raised $2.5 billion by selling offshore bonds this year in a market hot for Indian bank debt.

This year, global investors have also bought bonds from State Bank of India and UTI Bank as they want exposure to an economy expanding at an annual pace of more than 9 per cent.