State Bank of India (SBI) has raised ₹10,000 crore today at a coupon rate of 7.36 per cent through its fifth infrastructure bond issuance. The issue attracted an overwhelming response from investors, with bids in excess of ₹19,884 crore, and was oversubscribed by around four times against the base issue size of ₹5,000 crore.
The total number of bids received was 143, indicating wider participation with heterogeneity of bids. The investors were from provident funds, pension funds, insurance companies, mutual funds, corporates etc. The proceeds of the bonds will be utilised to enhance long-term resources for funding infrastructure and the affordable housing segment.
Based on the response, the bank has decided to accept ₹10,000 crore at a coupon rate of 7.36 per cent payable annually. This represents a spread of 21 bps over the corresponding FBIL G-Sec par curve. The instrument is rated AAA with stable outlook. With the current issuance, the total outstanding long-term bonds issued by the bank are at ₹49,718 crore.
SBI Chairman Shri Dinesh Khara said that this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.