SBI Raises Rs 10,000 Crore Via Infrastructure Bonds- Check Coupon Rate, Tenor, Credit Rating, Buyers

The State Bank of India ( SBI ), the country’s largest lender, on Monday, raised Rs 10,000 crore via bonds. In an exchange filing, the bank said that the infrastructure bonds were raised at a coupon rate of 7.23 per cent. The non-convertible, taxable, redeemable, unsecured, fully paid-up long-term bonds have been issued by the State Bank of India at a face value of Rs 1 lakh each. 

SBI infrastructure bonds: Who are the buyers for SBI's Rs 10,000 crore fundraising?

“The issue attracted an overwhelming response from investors with bids in excess of Rs 11,500 crore and was oversubscribed in excess of two times against the base issue size of Rs 5,000 crores,” State Bank of India said in the regulatory disclosure. Among 85 bidders who participated in the fundraiser were provident funds, pension funds, insurance companies and mutual funds among others. 

SBI infrastructure bonds: What will the funds be used for?

SBI said that the proceeds of the funds raised via these infrastructure bonds will be utilized in enhancing long-term resources for funding infrastructure and affordable housing segment of the company. 

“The Bank has decided to accept Rs 10,000 crores at a coupon rate of 7.23% payable annually for a tenor of 15 years. The instrument is rated AAA with a stable outlook. This issuance is also very significant as the Bank has been successful in raising long-duration bonds successively,” the bank further said. "This issuance will help in developing a long-term bond curve and encourage other
banks to issue bonds of a longer tenor," SBI Chairman CS Setty said.