The State Bank of India (SBI), the country’s largest lender, announced on Wednesday that it has successfully raised ₹10,000 crore through its fifth infrastructure bond issuance, with a coupon rate of 7.36 per cent.
"The issue attracted overwhelming response from investors with bids in excess of ₹19,884 crore and was oversubscribed by around four times against the base issue size of ₹5,000 crore," SBI revealed in a BSE filing. The total number of bids received was 143, indicating wider participation and a diverse array of investors.
The investor base included provident funds, pension funds, insurance companies, mutual funds, and corporates. The proceeds from the bonds will be used to enhance long-term resources for funding infrastructure and affordable housing projects, the bank stated.
"Based on the response, the bank has decided to accept ₹10,000 crore at a coupon rate of 7.36 per cent payable annually. This represents a spread of 21 basis points over the corresponding FBIL G-Sec par curve," SBI said. With this issuance, the total outstanding long-term bonds issued by the bank now stand at ₹49,718 crore.
SBI Chairman Dinesh Khara highlighted the significance of this issuance, stating, "This will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor." He noted the bank's continued success in raising long-duration bonds as a positive trend for the financial sector.
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