Mumbai: State Bank of India (SBI) on Wednesday said that it has raised Rs 9,718 crore through its second infrastructure bond issuance at a coupon rate of 7.70 percent per annum for the 15-year money. This is the second fund-raising since early December when it had mopped up Rs 10,000 crore via infra bonds.
"The fund proceeds will be utilised for enhancing long-term resources for funding infrastructure and affordable housing," said the bank in a statement.
"The issue attracted good response from investors with bids of Rs 14,805 crore, indicating an oversubscription of 2.96 times from 118 bidders," said SBI. The bank also added that investors were mutual funds, provident and pension funds, and insurers. "The pricing of 7.70 percent represents a spread of 17 bps over the G-Sec curve," it added.
Before this, the bank had raised Rs 10,000 crore through infrastructure bonds on December 6, 2022, at a spread of 17 bps over the corresponding G-Sec curve.
This issuance is significant, considering this is the first time a domestic bank is issuing a 15-year infrastructure bond, helping it in long-term lending to the infrastructure segment.
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