SBI Raises Rs 10,000 Cr for Infrastructure & Affordable Housing
State Bank of India has raised Rs. 10,000 crore Non-Convertible, Taxable, Redeemable, Unsecured Fully Paid Up Long Term Bonds - Series I at 7.51%. The funds raised are for enhancing long-term resources for funding infrastructure and affordable housing. The funds being raised by the bank through this issue are not meant for financing any particular project. “The tenor of these bonds is 10 years. The issue attracted a response from investors with bids of Rs. 16,366 crores and was oversubscribed by about 3.27 times against the base issue. The issuance with 143 bids also demonstrates the confidence of the investor class. This also very clearly demonstrates the maturity of Indian investors in their selection of Issuers of such instruments," SBI said. Based on the response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.51% payable annually for a tenor of 10 years. This represents a spread of 17 bps over the corresponding Government of India Security, indicating the high quality of credit. The Bank has AAA credit rating from domestic credit rating agencies for these instruments.
Tags : State Bank of India funds infrastructure affordable housing SBI