State Bank of India (SBI) raised ₹9,718 crore through its second infrastructure bond issuance on Wednesday at a coupon rate of 7.70 per cent.
India’s largest bank had raised ₹10,000 crore last month through its maiden infrastructure bond issuance at a coupon rate of 7.51 per cent.
The tenor of the latest bond issuance is 15 years, while that of the previous issuance was 10 years.
The fund proceeds from the infrastructure bonds issuance will be utilised in enhancing long-term resources for funding infrastructure and the affordable housing segment.
“The issue attracted an overwhelming response from investors with bids of ₹14,805 crore, and was oversubscribed by about 2.96 times against the base issue.
“The total number of bids received was 118 indicating wider participation. The investors were across mutual funds, provident & pension funds, and insurance companies,” per the bank’s statement.
SBI said the latest bond issuance represents a spread of 17 basis points (bps) over the corresponding FBIL G-Sec par curve. The previous issuance was also at a spread of 17 bps over the corresponding FBIL G-Sec par curve.