Last Update: January 18, 2023, 7:05 PM IST
The proceeds of the fund will be used to raise long-term resources for financing infrastructure and affordable housing.
This is the second fundraiser since early December when it raised Rs 10,000 crore through infra bonds
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 a 15-year maturity. 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. 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.
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.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)