State Bank of India on Friday raised Rs 10,000 crore through its maiden infrastructure bond issuance, making it the largest single infra bond sale by any domestic lender.
The 10-year money will be utilised to enhance long- term resources for funding infrastructure and affordable housing segment, the bank said in a statement.
The issue attracted overwhelming response with an oversubscription of 3.27 times or bids worth Rs 16,366 crore, against the base issue from 143 bids, demonstrating the confidence of the investor class, the bank said.
Based on the response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.51% payable annually for a tenor of 10 years. The coupon represents a spread of 17 basis points over the corresponding government security, indicating high quality of credit.
Commenting on the successful bond sale, SBI Chairman Dinesh Khara said, infrastructure development is a key priority for the country and SBI, being the largest lender, has been in the forefront for advancement of social, green and other infra projects.
These long-term bonds will help the bank in furthering the cause of infrastructure development, he added.
The bond has AAA-rating from domestic credit raters. Meanwhile, on the retail e-rupee issuance by the Reserve Bank from Thursday, the SBI chairman said the pilot retail-CBDC is a game-changer with durable effects that should ensure better monetary transmission at much lesser cost.
The anonymity factor is critical for its acceptance. It collaborates, complements and completes the currency architecture in vogue, while also incubating further innovation, Khara added.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
