State lender State Bank of India (SBI) has raised ₹10,000 crore at a coupon rate of 7.54 per cent through its 15-year infrastructure bond issuance, reported Business Line.
Bidding for the bonds took place on July 31. The bond issuance’s coupon rate represents a spread of 13 basis points over the corresponding FBIL G-Sec par curve.
The bond proceeds will be used to enhance long-term resources for funding infrastructure and affordable housing, a statement by SBI shows.
The bank’s statement also stated that it is the first issuance of a long-term bond of this tenor by any bank in the current financial year.
SBI said its issue garnered an overwhelming response from investors with bids of ₹21,698 crore, and was oversubscribed 4.34 times against the base issue size ( ₹5,000 crore).
The number of bids was 115 from investors such as provident funds, pension funds, insurance companies, mutual funds, and corporates.
Prior to this, the bank had raised infrastructure bonds of ₹9,718 crore on January 19, 2023, at a spread of 17 bps over the corresponding FBIL G-Sec par curve.
In June, the bank raised ₹3,101 crore via tier-I bonds (under Basel III) at a coupon rate of 8.10 per cent, against the issue size of ₹10,000 crore (base issue size of ₹3,000 crore and green shoe option of ₹7,000 crore).
