Last updated: January 18, 2023, 7:05 PM IST
Proceeds from the fund will be used to strengthen long-term resources to finance infrastructure and affordable housing.
This is the second fundraising since early December when it had raised Rs 10,000 crore through infra bonds
State Bank of India (SBI) said on Wednesday it has raised Rs 9,718 crore through the second infrastructure bond issuance at a coupon rate of 7.70 per cent per annum for the 15-year money. This is the second fundraising since early December when it had swept up Rs 10,000 crore through infra bonds.
Proceeds from the fund will be used to strengthen long-term resources to finance infrastructure and affordable housing, the bank said in a statement. The issue attracted good response from investors with bids of Rs 14,805 crore, indicating an oversubscription of 2.96 times from 118 bidders, SBI said, and investors included mutual funds, provident and pension funds and insurers.
The 7.70 percent pricing represents a spread of 17 bps across the G-Sec curve. Before that, as of 6 December 2022, the bank had raised Rs 10,000 crore through infrastructure bonds, with a spread of 17 basis points on the corresponding G-Sec curve. This issuance is significant given that this is the first time a domestic bank has issued a 15-year infrastructure bond, helping it provide long-term lending to the infrastructure segment.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)
