Bond proceeds will be used to increase long-term resources to finance infrastructure and affordable housing segments, the report said File Image
State Bank of India (SBI) on Wednesday raised Rs 10,000 crore through its fifth infrastructure bond issue.
The country’s largest lender raised the money at a coupon rate of 7.36 percent.
The issue attracted overwhelming response from investors with bids of over Rs 19,884 crore and was oversubscribed by about four times against the base issue size of Rs 5,000 crore, SBI said in a regulatory filing.
The total number of bids received was 143, indicating broader participation with heterogeneity of bids, the report said.
The investors were in provident funds, pension funds, insurance companies, mutual funds, corporates etc., the report said.
Bond proceeds will be used to increase long-term resources to finance infrastructure and affordable housing segments, the report said.
“Based on the response, the bank has decided to accept Rs 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,” the report said.
With the current issuance, the total outstanding long-term bonds issued by the Bank is Rs 49,718 crore.
This issue is also of great importance because the Bank has succeeded in successively raising long-term bonds.
SBI chairman Dinesh Khara said this issuance will help develop a long-term bond curve and encourage other banks to issue longer-term bonds.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First print: June 26, 2024 | 2:51 PM IST