SBI raises Rs 10,000 crore from infrastructure bonds at 7.49%

With the current issuance, the total outstanding long-term bonds issued by the bank is at Rs 39,718 crore

The country’s largest lender State Bank of India (SBI) on September 22 said it raised Rs 10,000 crore at a coupon rate of 7.49 percent through its fourth infrastructure bond issuance.

SBI in a statement said that the issue attracted an overwhelming response from investors with bids of Rs 21,045.10 crore and was oversubscribed by more than five times against the base issue size of Rs 4,000 crore.

"The total number of bids received was 134, 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 utilised in enhancing long-term resources for funding infrastructure and the affordable housing segment," said the bank.

SBI further added that based on the response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.49 percent payable annually.

"This represents the spread of 12 bps over the corresponding FBIL G-Sec par curve," the statement added.

Prior to this, the bank had raised long-term bonds of Rs 10,000 crore on August 1, 2023, at a spread of 13 bps over the corresponding FBIL G-Sec par curve. The bank has AAA credit rating with a stable outlook from all domestic credit rating agencies for these instruments. With the current issuance, the total outstanding long-term bonds issued by the bank is at Rs 39,718 crore.