SBI raises Rs 10,000 crore via infrastructure bond

State Bank of India (SBI), the largest lender in India, stated on Monday that it has raised 10,000 crore by issuing 15-year infrastructure bonds with a 7.54% coupon rate. According to the bank, the funds would be used to increase long-term funding sources for crucial infrastructure projects and help the affordable housing market.

According to SBI, there was a strong demand for these financial instruments because the bank received bids totaling Rs. 21,698 crores, which is astoundingly 4.34 times the base issue size. The bank also disclosed that the investors come from a variety of industries, including mutual funds, corporations, insurance firms, provident funds, and pension funds.

The bank provided bonds at an interest rate that was just a little bit higher than the rate offered by conventional government bonds. According to SBI, the bonds will be issued at a 13 basis point (bps) premium over the average government bond rate. According to domestic credit rating agencies, SBI continues to have a steady outlook and an exceptional credit rating of AAA, the bank said.

Source: Media Reports