SBI raises ₹9,718 cr in second tranche of infrastructure bonds
1 min read . Updated: 18 Jan 2023, 07:33 PM IST
PremiumThe fund proceeds will be utilised for enhancing long-term resources for funding infrastructure and affordable housing
Public lender State Bank of India (SBI) on Wednesday said it has raised ₹9,718 crore through its second infrastructure bond issuance at a coupon rate of 7.70 per cent per annum for the 15-year money.
This is the second fund-raising since early December when SBI had mopped up ₹10,000 crore via infrastructure bond.
The fund proceeds will be utilised for enhancing long-term resources for funding infrastructure and affordable housing, the bank said in a statement.
The issue attracted good response from investors with bids of ₹14,805 crore, indicating an oversubscription of 2.96 times from 118 bidders, SBI said, adding investors were mutual funds, provident and pension funds, and insurers.
The pricing of 7.70 per cent represents a spread of 17 bps over the G-Sec curve. Before this, the bank had raised ₹10,000 crore through infrastructure bonds on December 6, 2022, at a spread of 17 bps over the corresponding G-Sec curve.
This issuance is significant considering this is the first time a domestic bank is issuing a 15-year infrastructure bond, helping it in long-term lending to the infrastructure segment.
The State Bank of India (SBI) in a regulatory filing earlier had said that it is mulling to rise ₹10,000 crore fund through infrastructure bond. India's largest bank informed Indian bourses that the Executive Committee of the Central Board of SBI is going to consider the fund raise proposal in its next meeting scheduled on 3rd January 2022. The Executive Committee of the Central Board of SBI would also consider whether the fund will be raised through public issue or through private placement in FY23.
On Wednesday, the company's scrip on BSE closed trading 0.26 per cent lower at ₹591.40.
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