New Delhi: State Bank of India (SBI) on Wednesday said it has raised Rs 9,718 crore through its second infrastructure bond issue at a coupon rate of 7.70 per cent per annum for 15-year money. This is the second fund since early December, when it raised Rs 10,000 crore through infra bonds.
The proceeds of the fund will be used to raise long-term resources for financing infrastructure and affordable housing, the bank said in a statement. ,Also read: Central Bank of India’s third quarter profit up 64% at Rs 458 crore,
SBI said the issue received a good response from investors with bids of Rs 14,805 crore indicating oversubscription of 2.96 times from 118 bidders, investors were mutual funds, provident and pension funds and insurers. ,Also read: Gold falls by Rs 105; Silver up by Rs 52,
The pricing of 7.70 per cent represents a spread of 17 bps on the G-Sec curve. Earlier, the bank had raised Rs 10,000 crore through infrastructure bonds due on December 6, 2022, at a spread of 17 bps on the respective G-Sec curve.
The issuance is significant as it is for the first time that a domestic bank is issuing a 15-year infrastructure bond, thereby helping in long-term lending in the infrastructure segment.