Thu. Jul 25th, 2024 online news,Mumbai, July 11th, 2024: State Bank of India (SBI), the country’s largest lender, raised Rs. 10,000 crores today at a coupon rate of 7.36% through its sixth infrastructure bond issuance.

The issue attracted overwhelming response from investors with bids in excess of Rs. 18,145 crores and was oversubscribed by around 3.6 times against the base issue size of Rs. 5,000 crores.

The total number of bids received was 120 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 utilized in enhancing long term resources for funding infrastructure and affordable housing segment.

Based on the response, the Bank has decided to accept Rs. 10,000 crores at a coupon rate of 7.36% payable annually for a tenor of 15 years. The instrument is rated AAA with stable outlook. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs. 59,718 crores.

This issuance is also very significant as the Bank has been successful in raising long duration bonds successively.

SBI Chairman Shri Dinesh Khara said that this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.

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