The country largest lender, State Bank of India (SBI) in a recent development on Wednesday (July 10) announced that it has raised Rs 10,000 crores through the sixth infrastructure bond issuance at a coupon rate of 7.36 per cent.
As per the regulatory filing, the issuance took place today and the bonds received a good response from the investors, with the bids totaling over Rs 18,145 crores. Moreover, the bond was oversubscribed by around 3.6 times the base issue size of Rs 5,000 crores.
Furthermore, the issue attracted 120 bids from a wide array of participants ranging from provident funds, pension funds, insurance companies, mutual funds, and corporates.
About the Details of the Bond Issuance
The bonds carry a coupon rate of 7.36 per cent payable annually, have a tenor of 15 years.
State Bank of India (SBI), the country’s largest lender | File/Representative Image
The strong demand allowed SBI to raise the full Rs 10,000 crores at this attractive rate and the bonds have been rated AAA with a stable outlook, said the company in the release.
"This issuance is also very significant as the Bank has been successful in raising long duration bonds successively. SBI Chairman Shri 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," added the company in the BSE exchange filing.
With this latest issuance, the total outstanding long-term bonds issued by SBI now stands at Rs 59,718 crores.
Share performance
The shares of the company on Wednesday at 3:30 pm IST closed the day Rs 850.05, down by 1.31 per cent.
