State Bank of India (SBI) has raised ₹10,000 crore through its maiden infrastructure bond issuance on Friday at coupon rate of 7.51 per cent.
The coupon rate represents a spread of 17 basis points over the corresponding Government of India Security.
This is the largest single infrastructure bond issued by any Bank in the country, according to a statement by India’s largest bank.
“The amount raised through bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. The tenor of these bonds is 10 years,” per the statement.
The Bank said the issue attracted overwhelming response, with investors putting in 143 bids aggregating ₹16,366 crore. The issue was oversubscribed by about 3.27 times against the base issue (of ₹5,000 crore).
SBI Chairman Dinesh Khara said: “Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been in the forefront for advancement of social, green and other infrastructure projects. These long term bonds will help the bank in furthering the cause of infrastructure development”.