SBI raises Rs 10,000 cr through its maiden infra bonds

on Friday raised Rs 10,000 crore through its maiden infrastructure bond issue at coupon of 7.51%. The tenor of the bonds is 10 years.

This is the largest infrastructure bond issue by any .

The proceeds of the fund will be used to fund infrastructure projects and to lend to the affordable housing segment.

, the country’s largest lender, received overwhelming response from investors with bids of Rs 16,366 crore, prompting an early closure of the issue. It was scheduled to close next week.

This coupon at 7.51% is merely 17 basis points over the corresponding government security, indicating investors' comfort about the high credit quality of the bonds.

“Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been in the forefront for advancement of social, green and other infrastructure projects,” SBI chairman Dinesh Khara said.

“These long-term bonds will help the bank in furthering the cause of infrastructure development.” The bonds are rated AAA by India Ratings and .

In September, SBI had raised Rs 4,000 crore through Basel III-compliant Tier II bonds maturing in 15 years at a 7.57% coupon.