SBI Raises Rs 10,000 Crore By Issuing Infrastructure Bonds; Details

SBI Bonds:  SBI on Wednesday declared that it has raised Rs 10,000 crore by issuing infrastructure bonds. The SBI stated in a statement that the proceeds from the bonds will be used to boost long-term financing for the infrastructure and affordable housing sectors.

This new funding follows a similar event about two weeks ago when the nation's largest lender raised Rs 10,000 crore by issuing infrastructure bonds.

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The coupon rate for the latest issue was 7.36 percent, paid annually over a 15-year period, which is the same as the previous issue. The state-owned lender launched the issue to raise Rs 5,000 crore, and thanks to strong investor interest and the green shoe choice, it ended up raising Rs 10,000 crore, he explained.

The issue was 3.6 times oversubscribed, with bids of over Rs 18,145 crore received. According to the statement, a total of 120 investors, including provident funds, pension funds, insurance companies, mutual funds, and businesses, participated in the financing.

SBI Chairman Dinesh Khara stated that the issue would help to develop the long-term bond curve and inspire other banks to issue bonds with longer maturities. According to the statement, with the current issuance, the bank's total outstanding long-term bonds outstanding stands at Rs 59,718 crore.

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(With Agencies Input)