State Bank of India (SBI) on Friday announced that it has raised Rs 10,000 crore through an infrastructure bond issue.
The country’s largest lender will be paying a coupon rate of 7.49% on the bonds, as per a statement.
This is the fourth infra bond issue by SBI and the money raised will be deployed for on-lending to infrastructure projects and affordable housing, it said.
This represents the spread of 12 bps over the corresponding FBIL G-Sec par curve. Prior to this, the bank had raised long-term bonds of Rs. 10,000 crore on August 1, 2023 at a spread of 13 bps over the corresponding FBIL G-Sec par curve. The bank has AAA credit rating with a stable outlook from all domestic credit rating agencies for these instruments. With the current issuance, the total outstanding long-term bonds issued by the bank is at Rs.39,718 crore.
SBI had launched the issue with an aim to raise Rs 4,000 crore, and the same was oversubscribed by over five times, it said, adding that 134 bids worth Rs 21,045 crore were received.
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The investors were across provident funds, pension funds, insurance companies, mutual funds and corporates, the statement said.
The coupon is 0.12% over the corresponding FBIL G-Sec par curve and marginally better than the 0.13% it had to promise at the last infra bond issuance in August 2023, it added.
It had raised Rs 10,000 crore from the route in August, and with the current issuance, the total outstanding long-term bonds issued by the bank is Rs 39,718 crore.
Edited by Kanishk Singh
