India’s largest State Bank said it has raised Rs 10,000 crore through its seventh infrastructure bond issue.
SBI raised Rs 10,000 crore on Monday at a coupon rate of 7.23 percent in its seventh infrastructure bond issue, the lender said in a statement.
The issue attracted overwhelming response from investors with bids of over Rs 11,500 crore and was oversubscribed 2 times compared to the base issue size of Rs 5,000 crore, it said.
The total number of bids received was 85 indicating a wide participation and diversity of bids. “The investors came from provident funds, pensions, insurance companies, mutual funds etc.
The proceeds of the bonds will be used to develop long-term facilities to finance infrastructure and affordable housing segments, “said SBI. Based on the response, the Bank has decided to accept Rs 10,000 crore at a coupon rate of 7.23 percent payable annually. 15 years.
The tool is rated AAA with a stable view. SBI further said that the issuance is also very important as the bank has successfully raised long-term bonds in succession.
SBI Chairman CS Setty said the issuance will help in shaping the long-term bond curve and encourage other banks to issue longer tenor bonds.
