Infra Bonds
SBI raises Rs 10,000 cr via infra bonds
Mumbai: India’s largest lender State Bank of India (SBI) announced the successful issuance of its fourth set of infrastructure bonds, raising Rs 10,000 crore at a coupon rate of 7.49 percent.
The offering received an enthusiastic response from investors, with bids totaling Rs 21,045.10 crore, oversubscribing by more than five times compared to the base issue size of Rs 4,000 crore.
"The total number of bids received was 134, indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates, etc. The proceeds of bonds will be utilised in enhancing long-term resources for funding infrastructure and the affordable housing segment," said the bank.
SBI further added that based on the response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.49 percent payable annually.
"This represents the spread of 12 bps over the corresponding FBIL G-Sec par curve," the statement added.
Earlier, on August 1, 2023, the bank successfully raised Rs 10,000 crore through long-term bonds, at a spread of 13 basis points over the corresponding FBIL G-Sec par curve.
These instruments hold a AAA credit rating with a stable outlook from all domestic credit rating agencies.
With this recent issuance, the total outstanding long-term bonds issued by the bank now amount to Rs 39,718 crore.
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