 "SBI")
State Bank of India , the country's largest lender, has started discussions with market participants to raise around Rs 10,000 crore ($1.20 billion) through infrastructure bonds, two merchant bankers said on Tuesday.
"SBI has alerted bankers about its plans to come up with a 10-year or 15-year infrastructure bond issue and will finalise the tenor based on investor feedback," one of the bankers said, requesting anonymity as he is not authorised to speak to the media.
This will be the lender's first bond issuance and the country's first infrastructure bond sale this financial year.
SBI is likely to invite bids for the bond issue in early July, the bankers said.
SBI did not respond to a Reuters email for comment.
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In January, SBI raised Rs 5,000 crore through perpetual bonds at an 8.34 per cent coupon. Last financial year, it raised an aggregate of Rs 20,000 crore through the sale of 15-year infrastructure bonds.
Earlier this month, SBI raised $100 million through its London branch by selling three-year senior unsecured floating-rate bonds that were sold at a spread of 95 basis points above the secured overnight financing rate (SOFR).
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