SBI raises Rs 10,000 cr through its maiden infra bond issuance at coupon rate of 7.5%

State Bank of India (SBI), the country’s largest lender, has raised Rs 10,000 crore through its maiden infrastructure bond issuance on Friday at coupon rate of 7.51%. This is the largest single infrastructure bond issued by any bank in the country. The amount raised through bonds will be utilised in enhancing long term resources for funding infrastructure and affordable housing segment. The tenor of these bonds is 10 years.
 
The issue attracted overwhelming response from investors with bids of Rs 16,366 crore and was oversubscribed by about 3.27 times against the base issue.

"The issuance with 143 bids also demonstrates the confidence of investor class. This also very clearly demonstrates the maturity of Indian investors in their selection of Issuers of such instruments," said SBI in a statement on Friday

Based on the response, the Bank has decided to accept Rs 10,000 crore at a coupon rate of 7.51% payable annually for a tenor of 10 years.

SBI Chairman Dinesh Khara said, "Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been in the forefront for advancement of social, green and other infrastructure projects. These long term bonds will help the bank in furthering the cause of infrastructure development."

The bank has AAA credit rating from domestic credit rating agencies for these instruments.

 
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