State Bank of India (SBI) on Wednesday announced it has raised Rs 10,000 crore through the issuance of infrastructure bonds. The proceeds will enhance long-term resources for funding infrastructure and the affordable housing segment.
This fresh funding follows a similar development a fortnight ago, where the largest lender in the country raised Rs 10,000 crore through a similar bond issuance. The coupon rate for the latest issue stood at 7.36% annually over a 15-year tenor, matching the last issuance.
The state-owned lender initially aimed to raise Rs 5,000 crore but ended up raising double that amount thanks to high investor interest and a greenshoe option. The issue was oversubscribed by 3.6 times, receiving bids in excess of Rs 18,145 crore from 120 investors, including provident funds, pension funds, insurance companies, mutual funds, and corporates.
SBI chairman Dinesh Khara stated that the issuance would aid in developing a long-term bond curve and encourage other banks to issue longer-tenor bonds. With this latest issuance, the total outstanding long-term bonds issued by the bank now amount to Rs 59,718 crore.
(Disclaimer: With inputs from agencies.)