SBI increase Rs 10,000 Crore through long-term infrastructure bonds
State Bank of India (SBI) on Wednesday said it has raised Rs 10,000 Crore through its sixth infrastructure bond issue offering a coupon of 7.36 percent.
The bank said the issue received bids worth over Rs 18,145 Crore and was oversubscribed by about 3.6 times against the base issue size of Rs 5,000 Crore.
The total number of bids received from investors from various sectors including provident funds, pension funds, insurance companies, mutual funds and corporate was 120.
The lender said the proceeds of the bonds with 15-year maturity will be used to raise long-term resources to finance infrastructure and affordable housing sectors.
“This issuance will help evolve the long-term bond curve and encourage other banks to issue long-term bonds,” SBI Chairman Dinesh Khara said.
With the current issuance, the total outstanding long-term bond issued by the bank is Rs 59,718 Crore.
The bank’s total exposure to the infrastructure sector as of March 31, 2024, stood at Rs 3,94,681 Crore. The share of infrastructure loans in the total domestic advances of the bank is 12.23 percent.
