Country's largest lender by assets, State Bank of India (SBI), on 28 December said its board will soon consider plans to raise funds through issue of infrastructure bonds worth Rs 10,000 crore during financial year 2023.
"To seek approval for raising of Infrastructure Bonds up to an amount of Rs 10,000 crore through a public issue or private placement, during FY23," SBI said in a regulatory filing.
The meeting of the Executive Committee of the Central Board of State Bank of India is scheduled to be held January 3.
Earlier this month, SBI raised Rs. 10,000 crore through its maiden infrastructure bond issue. The amount raised through the bonds planned to be used to fund long-term infrastructure and affordable housing projects.
The Bank has set a coupon rate of 7.51 payable annually for a tenor of 10 years on its maiden infra bonds.
The coupon represents a spread of 17 basis points (bps) over corresponding G-Sec bonds. The SBI infra bonds come with a AAA credit rating from domestic rating agencies. One basis point is one-hundredth of a percent.
The issue attracted an overwhelming response from investors with bids worth Rs. 16,366 crore and was oversubscribed 3.27 times.
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