1 min readMumbaiUpdated: Jul 11, 2024 08:46 AM IST
State Bank of India (SBI) on Wednesday said it has raised Rs 10,000 crore through its sixth infrastructure bond issuance, offering a coupon of 7.36 per cent.
The issue received bids in excess of Rs 18,145 crore and was oversubscribed by around 3.6 times against the base issue size of Rs 5,000 crore, the bank said.
The total number of bids received was 120 from investors across segments, including provident funds, pension funds, insurance companies, mutual funds and corporates.
The proceeds of bonds, having maturity of 15 years, will be utilized in enhancing long-term resources for funding infrastructure and affordable housing segments, the lender said.
“This issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor,” said Dinesh Khara, Chairman, SBI.
With the current issuance, the total outstanding long-term bonds issued by the bank stands at Rs 59,718 crore.
As on March 31, 2024, the bank’s total loan outstanding to the infrastructure sector stood at Rs 3,94,681 crore. Of the total domestic advances of the bank, the share of infrastructure loans is 12.23 per cent.
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