Team Blitz India
NEW DELHI: The State Bank of India (SBI) has raised Rs 10,000 crore through 15-year infrastructure bonds to fund projects in sectors like power, roads etc. The coupon rate for bonds is fixed at 7.36 per cent.The issue was oversubscribed by almost four times the base issue size of Rs 5,000 crore.
Earlier, it had placed a 15-year infrastructure bond at a coupon of 7.49 per cent in September 2023 and raised Rs 10,000 crore.
This coupon of 7.36 per cent represents a spread of 21 bps over the corresponding Government bond curve.The instrument is rated AAA with stable outlook.
With the current issuance, the total outstanding Long-Term Bonds issued by the bank is at Rs 49,718 crore, SBI said in a statement.SBI chairman Dinesh Khara said that this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.
The total number of bids received was 143, indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc.
The proceeds of bonds will be utilised in enhancing long-term resources for funding infrastructure and affordable housing segments.
The board of the bank has already approved plans for raising up to Rs 20,000 crore through long-term bonds in the current financial year. Out of this, Rs 10,000 crore has been raised through the current offering.
