SBI Raises Rs 10,000 Cr Through 4th Infrastructure Bond Issue At 7.49%

India's largest lender State Bank of India (SBI) on Friday raised Rs 10,000 Crores at a coupon rate of 7.49% through its fourth infrastructure bond issuance, the bank informed the the stock exchanges.

According to a statement from SBI, the issue received an overwhelmingly positive reaction from investors, who offered bids totaling Rs 21,045.10 crore, more than five times the base offering size of Rs 4,000 Crore.

"The total number of bids received was 134 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment," the bank said in a press release.

It added, "Based on the response, the Bank has decided to accept Rs. 10,000 crores at a coupon rate of 7.49% payable annually. This represents spread of 12 bps over the corresponding FBIL G-Sec par curve."

Furthermore, "Prior to this, the Bank had raised Long Term Bonds of Rs. 10,000 crores on 1st August 2023 at a spread of 13 bps over corresponding FBIL G-Sec par curve. The Bank has AAA credit rating with stable outlook from all domestic credit rating agencies for these instruments. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs. 39,718 crores."

On Friday, the shares of SBI closed 1.67% higher at Rs 598.10 apiece on the BSE with the day's highs and lows of Rs 602 and Rs 592, respectively. Stock has given 5.41% in 1 week, and 221.30% in 3 years.