The Financial Express
State Bank of India (SBI) on Wednesday raised Rs 9,700 crore through its second infrastructure bond issuance. Bonds carry a coupon rate of 7.70% per annum. The tenure of these bonds is 15 years. The issue received 118 bids.
SBI will utilise the proceeds to enhance long-term resources for funding infrastructure and the affordable housing segments, it said in a press release.
“The 7.70% per annum coupon rate represents a spread of 17 bps over the corresponding FBIL G-Sec par curve. Before this, the bank had raised infrastructure bonds of Rs 10,000 crore on December 6, 2022, at a spread of 17 bps over the corresponding FBIL G-Sec par curve. The bank has an ‘AAA’ credit rating from domestic credit rating agencies for these instruments,” the release said.
“This latest issuance is very significant considering this is the first time an Indian bank is issuing 15-year long-term infrastructure bonds, helping the bank in long-term lending to the infrastructure segment. We believe this issue will help develop a long-term infra-bond curve and encourage banks to issue for longer tenures,” it said.
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