State Bank of India (SBI) on Monday said it has raised Rs 10,000 crore through long-term infrastructure bonds, offering a coupon rate of 7.54 per cent.
The proceeds of bonds, having 15-year maturity, will be utilized for funding infrastructure and the affordable housing segment, SBI said in a release.
The issue attracted bids worth Rs 21,698 crore and was oversubscribed by 4.34 times against the base issue size. The total number of bids received were 115 from various categories of investors including provident funds, pension funds, insurance companies, mutual funds and corporates.
However, the lender accepted Rs 10,000 crore of bids at a coupon rate of 7.54 per cent payable annually. This represents a spread of 13 basis points (bps) over the corresponding Financial Benchmarks India Pvt Ltd (FBIL) government securities (G-Sec) par curve. One basis point is one hundredth of a percentage point.
This is the third issuance of infrastructure bonds by the lender. It had raised Rs 10,000 crore in December 2022 and Rs 9,718 crore in January this year through such bonds.
