State Bank of India (SBI) has raised Rs. 10,000 crore through its maiden infrastructure bond issuance on Friday at a coupon rate of 7.51 per cent. This is the largest single infrastructure bond issued by any Bank in the country.
The amount raised through bonds will be utilized in enhancing long-term resources for funding infrastructure and the affordable housing segment.
The tenor of these bonds is 10 years.
Based on the response, the Bank has decided to accept Rs. 10,000 crores 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.
SBI Chairman Shri Dinesh Khara said, "Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been at the forefront for the advancement of social, green and other infrastructure projects. These long-term bonds will help the bank further the cause of infrastructure development”.
The Bank has an AAA credit rating from domestic credit rating agencies for these instruments. Infrastructure offers primary facilities that serve various economic activities which helps in the facilitation of the growth of the country & development of the economy through sectors such as healthcare, education, communication, transport, and others.