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State Bank of India (SBI) Friday said it has raised Rs 10,000 crore through its maiden infrastructure bonds, offering a coupon rate of 7.51 per cent.
The amount raised through these bonds, having 10-year maturity, will be utilized in enhancing long term resources for funding infrastructure and affordable housing segments, the bank said in a release.
The issue attracted 143 bids worth Rs 16,366 crore from investors and was oversubscribed by about 3.27 times against the base issue.
The lender said it decided to accept Rs 10,000 crore at a coupon rate of 7.51% payable annually for a tenor of 10 years. This represents a spread of 17 basis points (bps) over the corresponding government security.
“Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been in the forefront for advancement of social, green and other infrastructure projects. These long term bonds will help the bank in furthering the cause of infrastructure development,” said Dinesh Khara, Chairman, SBI.
This is the largest single infrastructure bond issued by any bank in the country, the release said.
