Comments
State Bank of India (SBI) has raised Rs 10,000 crore at a coupon rate of 7.54 per cent through its third infrastructure bond issuance.
Bidding for the 15-year tenor bonds took place on July 31. The coupon rate of the bond issuance represents a spread of 13 basis points over the corresponding FBIL G-Sec par curve.
The proceeds of the bonds will be used in enhancing long-term resources for funding infrastructure and affordable housing, as per a statement by India’s largest bank.
This is the first issuance of a long-term bond of this tenor by any bank in the current financial year, the bank said.
SBI said its issue attracted an overwhelming response from investors with bids of Rs 21,698 crore, and was oversubscribed 4.34 times against the base issue size (Rs 5,000 crore).
The number of bids was 115 from investors such as provident funds, pension funds, insurance companies, mutual funds, and corporates.
Prior to this, the bank had raised infrastructure bonds of Rs 9,718 crore on January 19, 2023, at a spread of 17 bps over the corresponding FBIL G-Sec par curve.
Last month, the bank had raised Rs 3,101 crore via tier-I bonds (under Basel III) at a coupon rate of 8.10 per cent, against the issue size of Rs 10,000 crore (base issue size of Rs 3,000 crore and green shoe option of Rs 7,000 crore).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.