SBI raises ₹10,000 crore via oversubscribed infrastructure bonds

India's largest public sector bank, the State Bank of India (SBI), announced on Wednesday that it has successfully raised ₹10,000 crore through the issuance of infrastructure bonds. This is SBI’s fifth such bond issuance and it comes at a competitive coupon rate of 7.36%. The bond issue saw an overwhelming response, being oversubscribed nearly four times the base issue size of ₹5,000 crore.

High Demand and Wide Participation

The bond issuance attracted bids worth ₹19,884 crore, demonstrating strong investor confidence. A total of 143 bids were received, indicating diverse and widespread participation. Investors included a mix of provident funds, pension funds, insurance companies, mutual funds, and various corporate entities. The broad range of participants underscores the attractiveness and reliability of SBI's infrastructure bonds in the current market scenario.

Fund Utilization and Strategic Investments

SBI has earmarked the funds raised from this bond issuance for enhancing its long-term resources. Specifically, the bank aims to channel these resources towards investments in critical infrastructure projects and affordable housing initiatives. These sectors are pivotal for sustainable economic growth and align with India’s developmental priorities.

Comments on the Bond Issuance

In a statement, SBI highlighted the success of the bond issuance, noting the substantial interest and confidence from diverse investor groups. The bank emphasized that the strong response reflects not only the trust in SBI's financial stability but also the promising outlook for India’s infrastructure and housing sectors.

SBI's infrastructure bonds are an essential tool for funding large-scale projects that require long-term investment horizons. By securing such a significant amount at a favorable rate, SBI reinforces its position as a key player in driving economic growth through strategic investments.