SBI raises Rs 10,000 crore more via infra bond

State Bank of India (SBI) Raises Rs 10,000 Crore Through Infrastructure Bonds

New Delhi: The State Bank of India (SBI) on Wednesday announced a successful raise of Rs 10,000 crore through the issuance of infrastructure bonds. This latest issuance is part of SBI's ongoing strategy to enhance its long-term resources dedicated to funding infrastructure and affordable housing projects.

The funds raised will be utilized to strengthen the bank’s capacity to support infrastructure development and affordable housing initiatives, thereby contributing significantly to these critical sectors. The bonds issued carry a coupon rate of 7.36 percent, payable annually over a 15-year tenor, matching the rate of the previous issuance.

The recent bond issuance follows a similar move made about two weeks ago, during which SBI had also raised Rs 10,000 crore through infrastructure bonds. In that instance, the bank had initially aimed to raise Rs 5,000 crore but ended up collecting Rs 10,000 crore due to substantial investor interest and the exercise of the greenshoe option.

The latest issue saw overwhelming demand, with the offering being oversubscribed by a factor of 3.6 times. The bank received bids totaling over Rs 18,145 crore, underscoring strong market confidence in SBI's financial stability and its infrastructure financing capabilities.

SBI Chairman Dinesh Khara remarked that this issuance is pivotal in developing a robust long-term bond curve and serves as a model to encourage other banks to issue bonds with extended tenors. "The successful completion of this bond issue highlights the market's trust in our financial strategy and supports our objective of bolstering long-term funding sources for essential infrastructure and housing projects," Khara added.

With this new issuance, SBI’s total outstanding long-term bonds now stands at Rs 59,718 crore, reflecting the bank's commitment to securing substantial resources for its strategic financial initiatives.