SBI raises Rs 10,000 Cr in infrastructure bond sale success

SBI raises Rs 10,000 Cr in infrastructure bond sale success

In a remarkable achievement, the State Bank of India (SBI) has successfully garnered an impressive sum of Rs 10,000 crore through its latest infrastructure bond issue. This development showcases SBI’s commitment to fostering India’s infrastructure growth and supporting affordable housing initiatives.

SBI, as the nation’s largest lender, has offered these bonds at an attractive coupon rate of 7.49 percent, as detailed in their official statement. This marks the fourth instance of SBI launching infrastructure bonds, with the proceeds earmarked for channeling into infrastructure projects and affordable housing endeavors.

Originally targeting a fundraising goal of Rs 4,000 crore, SBI’s offering was met with an overwhelming response, surpassing expectations by more than fivefold. A total of 134 bids, amounting to a staggering Rs 21,045 crore, were received, underscoring the strong investor interest in the initiative.

Diverse investors, including provident funds, pension funds, insurance companies, mutual funds, and corporates, participated in this momentous bond sale, as confirmed in the official statement.

Furthermore, the coupon rate of 7.49 percent demonstrates SBI’s competitive edge, standing at a slight 0.12 percent above the corresponding FBIL G-Sec par curve. This achievement represents an improvement from the 0.13 percent offered during the previous infrastructure bond issuance in August 2023.

With this latest issuance, SBI’s total outstanding long-term bonds have now reached an impressive Rs 39,718 crore, following a previous successful fundraising effort of Rs 10,000 crore in August. SBI continues to play a pivotal role in supporting India’s economic development and infrastructure growth through such initiatives, bolstering investor confidence in the process.

About SBI:

The State Bank of India (SBI), a prestigious Fortune 500 company, is an esteemed Indian multinational, public sector financial institution with its headquarters situated in Mumbai. With a heritage and legacy spanning over two centuries, SBI has earned the unwavering trust of generations of Indians, making it their bank of choice.

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