On Wednesday, the State Bank Of India (SBI), one of India’s biggest banks raised over ₹ 9,700 crores by issuing its infrastructure bonds in its second tranche.
SBI stated that it raised ₹9,718 crores through its second infrastructure bond issuance, at a coupon rate of 7.7 percent per annum for a tenure of 15 years. The Bank has AAA credit rating from domestic credit rating agencies for these instruments.
The issue attracted an overwhelming response from investors with bids of ₹ 14,805/- crores and was oversubscribed by about 2.96 times against the base issue. 118 bids were received, indicating wider participation. The investors include mutual funds, provident and pension funds and insurance companies.
The lender stated that the proceeds from the issue would be used to improve long-term resources. These resources, in turn, are for funding infrastructure as well as the affordable housing segment.
In a statement, SBI said that the bonds have a tenure of 15 years, and received an “overwhelming response from investors”. According to the statement, the bonds were oversubscribed by 2.96 times, attracting bids of ₹ 14,805 crores from 118 investors. These investors include mutual funds, insurance companies, and provident and pension funds.
SBI’s first infrastructure bond was issued On December 6, 2022. The banking giant raised infrastructure bonds of ₹ 10,000 crores. According to the press release made by SBI, it is the first 15-year long-term infra bond issued by an Indian bank.
Written By Karan N
