State Bank of India (SBI), the country’s largest lender, successfully raised Rs 10,000 crore through its fifth infrastructure bond issuance on Wednesday. The funds were raised at an attractive coupon rate of 7.36 percent.
The bond issuance received an overwhelming response from investors, attracting bids worth over Rs 19,884 crore, nearly four times the base issue size of Rs 5,000 crore. A total of 143 bids were received, indicating a broad participation across a diverse range of investors, including provident funds, pension funds, insurance companies, mutual funds, and corporates.
The proceeds from the bond issuance will be used to bolster long-term resources for funding infrastructure and affordable housing projects, according to a regulatory filing by SBI. The bank decided to accept Rs 10,000 crore at the established coupon rate, which represents a spread of 21 basis points over the corresponding FBIL G-Sec par curve.
SBI Chairman Dinesh Khara highlighted the significance of this issuance, noting that it will help develop a long-term bond curve and encourage other banks to issue longer-tenor bonds. This move is particularly important as SBI has been successful in raising long-duration bonds consecutively.
With this latest issuance, the total outstanding long-term bonds issued by SBI now stand at Rs 49,718 crore, further strengthening the bank’s capacity to support critical infrastructure development and affordable housing initiatives across India.