State Bank of India (SBI) has informed to the exchanges regarding fund raising of Rs9,718 crore through its second infrastructure bond issuance at coupon rate of 7.70 per cent.
On Wednesday, the bank informed that the issuance of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. The tenor of these bonds is 15 years.
Further, the issue received healthy response from investors with bids of Rs14,805 crore and was oversubscribed by about 2.96 times against the base issue. The total number of bids received was 118 indicating wider participation. The investors were across mutual funds, provident & pension funds & insurance companies.
Based on the healthy response, the Bank has decided to accept Rs9,718 crore at a coupon rate of 7.70% payable annually for a tenor of 15 years. This represents spread of 17 bps over the corresponding FBIL G-Sec par curve.
On December 06, 2022, the Bank had also raised infrastructure bonds of Rs10,000/- crore at a spread of 17bps over the corresponding FBIL G-Sec par curve. The Bank has AAA credit rating from domestic credit rating agencies for these instruments.
'This issuance is also very significant as this is the first time any bank in India is issuing a 15 years Long term infra bond and it will help the bank in lending long term to infrastructure. We believe that this issuance may help in developing a long term infra bond curve and encourage banks to issue longer tenor', the bank said in a regulatory filing on Wednesday.
At around 10:29 AM, SBI was trading at Rs590.40 per share lower by 0.17% on the BSE.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.