SBI raises Rs 10,000 cr through unsecured long-term infrastructure bonds

SBI has raised Rs 10,000 crores at a rate of 7.54 per cent through its third infrastructure bond issuance

New Delhi: The State Bank of India (SBI) has raised Rs 10,000 crores at a rate of 7.54 per cent through its third infrastructure bond issuance.

Bidding for it took place on Monday.

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

The tenor of these bonds is 15 years, it said.

This is the first issuance of long-term bond by any bank for this tenor in the current financial year. The issue attracted overwhelming response from investors with bids of Rs 21,698 crores and was oversubscribed by 4.34 times against the base issue size, the release said.

The total number of bids received were 115 indicating wide participation. The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc.

Prior to this, the Bank had raised infrastructure bonds of Rs. 9,718 crores on January 19, 2023.

The Bank has credit rating with stable outlook from domestic credit rating agencies for these instruments, SBI said in the release.