July 10, 2024 – The State Bank of India (SBI), the country’s largest lender, successfully raised Rs. 10,000 crores today through its sixth infrastructure bond issuance at a coupon rate of 7.36%. The bond issue received an overwhelming response from investors, with bids totaling Rs. 18,145 crores, oversubscribing the base issue size of Rs. 5,000 crores by approximately 3.6 times. A total of 120 bids were received, indicating wide participation and diverse investor interest, including provident funds, pension funds, insurance companies, mutual funds, and corporates.
Based on the response, the Bank has decided to accept Rs. 10,000 crores at a coupon rate of 7.36% payable annually for a tenor of 15 years. The instrument is rated AAA with stable outlook. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs. 59,718 crores.
This issuance is also very significant as the Bank has been successful in raising long duration bonds successively.
SBI Chairman Shri Dinesh Khara said that this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.
