SBI has offered Rs. 10,000 crore has been decided to accept.
Country’s largest lender State Bank of India on Monday said it has raised Rs. 10,000 crore has been collected. SBI on Monday issued its seventh infrastructure bond issue at a coupon rate of 7.23 per cent at Rs. 10,000 crore, the lender said in a statement.
The issue is Rs. 11,500 crore with bids of over 11,500 crores received an overwhelming response from investors and Rs. More than 2 times were subscribed against the base issue size of Rs 5,000 crore, it said.
The total number of bids received was 85 indicating wide participation with a variety of bids.
“The investors were in provident funds, pension funds, insurance companies, mutual funds etc. The bond proceeds will be used to raise long-term resources for infrastructure and affordable housing segments,” SBI said.
Based on the response, the bank has offered Rs. 10,000 crore has been decided to accept. The instrument is rated AAA with Stable Outlook.
SBI further said that the issue is also very significant as the bank has been able to raise long-term bonds sequentially.
SBI Chairman CS Sethi said the issuance will help develop the long-term bond curve and encourage other banks to issue long-term bonds.