SBI raises Rs 10000 cr through its maiden infra bonds issue

State Bank of India has raised Rs. 10,000 crore through its maiden infrastructure bond issuance on Friday at coupon rate of 7.51%. This is the largest single infrastructure bond issued by any Bank in the country.

The amount raised through bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. The tenor of these bonds is 10 years. The issue attracted overwhelming response from investors with bids of Rs. 16,366 crore and was oversubscribed by about 3.27 times against the base issue.

Based on the response, the Bank has decided to accept Rs. 10,000 crore at a coupon rate of 7.51% payable annually for a tenor of 10 years. This represents spread of 17 bps over the corresponding Government of India Security, indicates high quality of credit.

 

The Bank has AAA credit rating from domestic credit rating agencies for these instruments.

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