SBI Raises Rs 10,000 crore via infrastructure bonds to fund key projects

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State bank Of India SBI

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Mumbai: SBI on Wednesday announced raising Rs 10,000 crore through issuance of infrastructure bonds.

The proceeds of bonds will be utilized in enhancing long-term resources for funding infrastructure and affordable housing segment, SBI said in a statement.

The fresh funding follows a similar development around a fortnight back, when the country's largest lender had raised Rs 10,000 crore through infrastructure bond issuance.

The coupon rate for the latest issue was 7.36 per cent payable annually during the 15 year tenor, the same as the last issuance.

The state-owned lender had launched the issue to raise Rs 5,000 crore, and ended up raising Rs 10,000 crore courtesy the high investor interest and the greenshoe option, it said.

The issue was oversubscribed by 3.6 times, with bids in excess of Rs 18,145 crore being received, it said.

A total of 120 investors, including provident funds, pension funds, insurance companies, mutual funds, corporates, participated in the funding, it said.

SBI chairman Dinesh Khara said the issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.

With the current issuance, the total outstanding long-term bonds issued by the bank goes up to Rs 59,718 crore, the statement said.