MUMBAI: The nation’s largest lender State Bank of India (SBI), has raised Rs 10,000 crore from international investors who have subscribed to its seventh tranche of infra bonds at a coupon of 7.23%.
The bank said on Monday that the issue has received a total number of 85 bids, indicating wider participation from heterogenous group of investors.
"The issue has attracted an overwhelming response from investors with bids in excess of Rs 11,500 crore and was oversubscribed in excess of two times as against the base issue size of Rs 5,000 crore," said the bank in a statement.
Based on the overwhelming response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.23% payable annually for a tenure of 15 years.
The instrument is rated AAA with stable outlook, it said.
With this issuance, the bank has raised Rs 30,000 crore in infra bonds this fiscal, taking long-term bonds outstanding to Rs 59,718 crore.
The bank's infrastructure loans makes up 12.23% of its total domestic advances, and as of March 2024, its total outstanding loans to the infrastructure sector stood at Rs 3,94,681 crore.
Investors of the current issue include provident funds, pension funds, insurance companies, mutual funds etc, SBI said, adding the proceeds from the bond sale will be utilised in enhancing long term resources for funding infrastructure and affordable housing segment.
This issuance is significant as the bank has been successful in raising long duration bonds successively, said Chairman CS Setty. He added that the issuance will help the bank in developing a long-term bond curve and encourage other banks to issue bonds of longer tenure.