SBI raises Rs 10,000 crore through infrastructure bonds
State Bank of India (SBI) - the country's largest lender - said it raised Rs 10,000 crore on Wednesday at a coupon rate of 7.36 per cent through infrastructure bonds. Read on to know details.
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State Bank of India (SBI) - the country’s largest lender - said on Wednesday that it had raised Rs 10,000 crore at a coupon rate of 7.36 per cent through a sixth tranche of infrastructure bond. The PSU bank said the issue attracted overwhelming response from investors with bids in excess of Rs 18,145 crore, translating to oversubscription of around 3.6 times over the base issue size of Rs 5,000 crore.
SBI said that the proceeds from the bond issue would be utilised to enhance the long-term resources for funding the infrastructure and affordable housing segments.
The total number of bids received "stood at 120 indicating wider participation with heterogeneity of bids", it said.
Entities including provident funds, pension funds, insurance companies, mutual funds and corporates were among the investors, according to the bank.
Based on the response, SBI decided to accept Rs 10,000 crore at the rate of 7.36 per cent payable annually for a tenor of 15 years.
The instrument was rated 'AAA' with a stable outlook, it said. "With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs. 59,718 crore," SBI added.
"This issuance is also very significant as the Bank has been successful in raising long duration bonds successively," it said.
SBI Chairman Dinesh Khara said that this issuance would help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenors.
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11:00 PM IST