Comments
The Executive Committee of the Central Board of State Bank of India, on Tuesday, accorded approval to raise ₹10,000 crore via Infrastructure Bonds through a public issue or private placement during FY23.
India’s largest bank raised ₹10,000 crore last month through its maiden infrastructure bond issuance at a coupon rate of 7.51 per cent.
The coupon rate was at a spread of 17 basis points over the corresponding Government of India Security.
“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 Bank’s statement issued on December 2, 2022.
Related Stories
Raising resources via infra bonds could be one of the ways forward in future: SBI MD Setty
SBI raised ₹10,000 crore through its maiden infrastructure bond issuance on December 2 at 7.51% coupon rateIssue attracted an 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 then said: “Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been at the forefront for the advancement of social, green, and other infrastructure projects. These long-term bonds will help the bank in furthering the cause of infrastructure development”.
CS Setty, Managing Director, SBI, observed that the Bank keeps expanding its ability to raise funds. “Infrastructure bonds is the latest one....We have a huge infrastructure financing book. I don’t think the bond programme envisages that it will be only for (financing) infra projects going forward. Our existing book is also covered under that,” he said.
Related Stories
SBI, ICICI Bank and HDFC Bank continue to remain systemically important banks: RBI
The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.