SBI Raises Rs 10,000 Crore for Infrastructure

New Delhi, Jun 26 (PTI) State Bank of India (SBI) on Wednesday raised Rs 10,000 crore through its fifth infrastructure bond issuance.

The country's largest lender raised the funds at a coupon rate of 7.36 per cent.

The issue attracted overwhelming response from investors with bids in excess of Rs 19,884 crore and was oversubscribed by around four times against the base issue size of Rs 5,000 crore, SBI said in a regulatory filing.

The total number of bids received was 143, indicating wider participation with heterogeneity of bids, it said.

The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc, it said.

The proceeds of bonds will be utilized in enhancing long-term resources for funding infrastructure and affordable housing segments, it said.

"Based on the response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.36 per cent payable annually. This represents a spread of 21 bps over the corresponding FBIL G-Sec par curve," it said.

With the current issuance, the total outstanding long-term bonds issued by the Bank is at Rs 49,718 crore.

This issuance is also very significant as the Bank has been successful in raising long-duration bonds successively.

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