State Bank of India - India's largest lender - has once again raised Rs 10,000 crore through AAA-rated infrastructure bond issue.
The coupon rate of SBI's sixth bond issue was 7.36 percent, for a tenor of 15 years. The funds raised through the bond issue will be used to fund infrastructure and affordable housing, SBI said.
The fresh funding follows a similar bond issuance a fortnight back, when RBI had similarly raised Rs 10,000 crore through infrastructure bond issuance.
SBI noted overwhelming response from investors, with bids over Rs 18,145 crore for the bonds on offer, and the issue was over-subscribed by around 3.6 times compared to the base issue size of Rs 5,000 crore. Chairman Dinesh Khara said this issuance will help develop a 'long-term bond curve and encourage other banks to issue bonds of longer tenor'.
A total of 120 investors who have shown interest included provident funds, pension funds, insurance companies, mutual funds, corporates, SBI said. With this issuance, SBI's total outstanding bonds issued stands at Rs 59,718 crore.
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