State Bank Of India Raises Rs 10,000 Crore Via Sixth Bond Issuance

The infrastructure bond was oversubscribed by approximately 3.6 times against its base size of Rs 5,000 crore.

<div class="paragraphs"><p>State Bank of India signage. (Photographer: Vijay Sartape/ NDTV Profit)</p></div>
State Bank of India signage. (Photographer: Vijay Sartape/ NDTV Profit)

The State Bank of India, the largest lender in India, has achieved a significant milestone with its sixth infrastructure bond issuance, raising Rs 10,000 crore at a coupon rate of 7.36%.

The issuance, aimed at enhancing long-term resources for infrastructure and affordable housing segments, garnered immense investor interest.

The issue, which was oversubscribed by approximately 3.6 times against its base size of Rs 5,000 crore, received bids totalling Rs 18,145 crore from a diverse range of investors, including provident funds, pension funds, insurance companies, mutual funds, and corporates.

The bond issuance attracted 120 bids, highlighting a heterogeneous mix of investor profiles. The success of the issuance reaffirms SBI's strong credit standing, with the bonds being rated 'AAA' and a stable outlook.

The funds raised through this issuance will bolster SBI's efforts in supporting critical sectors with a 15-year tenure, it said in an exchange filing.

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Chairman Dinesh Khara expressed satisfaction with the overwhelming response and highlighted the importance of establishing a robust bond curve and encouraging other financial institutions to explore similar opportunities in the long-duration bond segment.

With the current issuance, SBI's total outstanding long-term bonds now stand at Rs 59,718 crore.

This comes on the back of SBI's announcement of getting approval from its board to raise up to Rs 20,000 crore through long-term bonds in the ongoing fiscal, either through a public issue or on a private placement basis.

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