SBI raises Rs 10k cr through 15-year infra bonds at 7.36% – Times of India
Mumbai: State Bank of India (SBI) has raised Rs. 10,000 crores through its fifth infrastructure bond, which was issued for a tenure of 15-years at a coupon rate of 7.36%.
The issue received bids exceeding Rs. 19,884 crores, making it oversubscribed by approximately 4 times against the base issue size of Rs. 5,000 crores. A total of 143 bids were received from provident funds, pension funds, insurance companies, mutual funds, and corporates.
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SBI will use the proceeds to fund infrastructure and affordable housing segments. The yield on the bond represents a spread of 21 basis points over the corresponding goverment security bond yield. The instrument rating for the bonds is AAA with a stable outlook.
SBIChairman Shri Dinesh Kharasaid that this bond issuance will help in developing a long-termbondcurve and encourage other banks to issuebondsoflonger tenor. With this issuance, the total outstanding Long-Term Bonds issued by the Bank now stands at Rs. 49,718 crores.
