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State Bank of India has raised ₹10,000 crore via a 15-year infrastructure bond issue at a coupon rate of 7.36 per cent.
This is the bank’s second infrastructure bond issuance in about a fortnight. Last month, it raised ₹10,000 crore at a coupon rate of 7.36 per cent.
The latest bond issue, which is the bank’s sixth infrastructure bond issuance so far, received bids in excess of ₹18,145 crore and was oversubscribed by around 3.6 times against the base issue size of ₹5,000 crore, the bank said in a statement.
The proceeds of bonds will be utilised in enhancing long-term resources for funding infrastructure and affordable housing segment.
The banks received bids from 120 investors, including provident funds, pension funds, insurance companies, mutual funds, corporates etc.
The instrument is rated AAA with a stable outlook. With the current issuance, the total outstanding long-term bonds issued by the bank are at ₹59,718 crore.
SBI Chairman Dinesh Kumar Kharasaid this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.
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