The investors are across provident funds, pension funds, insurance companies, mutual funds etc.
FinTech BizNews Service
Mumbai, 18 November, 2024: State Bank of India (SBI), the country’s largest lender, raised Rs10,000 crores today at a coupon rate of 7.23% through its seventh infrastructure bond issuance. The issue attracted overwhelming response from investors with bids in excess of Rs11,500 crores and was oversubscribed in excess of 2 times against the base issue size of Rs5,000 crores. The total number of bids received was 85 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds etc. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment.
Based on the response, the Bank has decided to accept Rs10,000 crores at a coupon rate of 7.23% payable annually for a tenor of 15 years. The instrument is rated AAA with stable outlook.
This issuance is also very significant as the Bank has been successful in raising long duration bonds successively. SBI Chairman Shri C S Setty said that this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.
