The country's largest lender has raised Rs 9,718 crore through its second infrastructure bond issuance on Wednesday (18 January) at coupon rate of 7.70%.
The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. The tenor of these bonds is 15 years.The issue attracted bids of Rs 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 & insurance companies. The bank has AAA credit rating from domestic credit rating agencies for these instruments.
Based on the response, SBI decided to accept Rs 9,718 crore at a coupon rate of 7.70% payable annually for a tenor of 15 years.
Prior to this bank had raised infrastructure bonds of Rs 10,000 crore on 6 December 2022 at a spread of 17 bps over the corresponding FBIL G-Sec par curve.
This is the first time any bank in India is issuing a 15 years long term infra bond and it will help the bank in lending long term to infrastructure.
SBI is banking and financial services statutory body engaged in providing a wide range of products and services to individuals, commercial enterprises, large corporates, public bodies, and institutional customers. The bank's net profit jumped 73.9% to Rs 13,624.52 crore on 14.2% rise in total income to Rs 88733.86 crore in Q2 FY23 over Q2 FY22.
The scrip was down 0.53% to Rs 588.25 on the BSE.
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