In a significant move, State Bank of India (SBI), the nation’s largest lender, announced on Monday the successful raising of Rs 10,000 crore through its seventh infrastructure bond issuance. The issuance, conducted at a 7.23% coupon rate, witnessed overwhelming investor interest.
The government-backed bank’s infrastructure bond attracted bids exceeding Rs 11,500 crore, more than twice the base issue of Rs 5,000 crore, underscoring strong investor confidence. A total of 85 bids, from a variety of investors including provident, pension, and mutual funds, highlighted the widespread appeal.
The raised capital will bolster funding for infrastructure and affordable housing. SBI Chairman C S Setty emphasized the issuance’s role in developing a long-term bond curve, encouraging other banks to consider similar long-duration bonds.
(With inputs from agencies.)