State Bank of India (SBI) raised Rs. 10,000 crore today at a coupon rate of 7.36% through its sixth infrastructure bond issuance.
The issue attracted overwhelming response from investors with bids in excess of Rs. 18,145 crore and was oversubscribed by around 3.6 times against the base issue size of Rs. 5,000 crore. The total number of bids received was 120 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc.
The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment.
Based on the response, the Bank has decided to accept Rs. 10,000 crore at a coupon rate of 7.36% payable annually for a tenor of 15 years. The instrument is rated AAA with stable outlook. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs. 59,718 crore.
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