SBI Raises Rs 1000 Cr To Fund Infra, Affordable Housing Projects
The instrument is rated AAA with a stable outlook. The current issuance, the total outstanding Long-Term bonds issued by the Bank is at Rs 59,718 crores
The issue attracted investors with bids over Rs 18,145 crores and was oversubscribed by around 3.6 times against the base issue size of Rs 5,000 crores. The total number of bids received was 120 indicating wider participation with heterogeneity of bids. The bank highlights in its press release that bond investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc.
The proceeds of bonds will be utilised to enhance long-term resources for funding infrastructure and the affordable housing segment. That will help in further increasing CAPEX expenditure.
Based on the response, the Bank has decided to accept Rs 10,000 crores at a coupon rate of 7.36 per cent payable annually for a tenor of 15 years. The instrument is rated AAA with a stable outlook. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs 59,718 crores.
The success of this bond can further motivate other financial intermediaries to borrow money by issuing long-term coupon bonds for infrastructural projects.
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