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SBI To Raise Up To Rs 10,000 Crore Via Infrastructure Bonds During FY23
A branch of the State Bank of India (Representative Image)
India's biggest lender State Bank of India (SBI) on Tuesday said it plans to raise up to Rs 10,000 crore through issuance of infrastructure bonds during the current financial year.
The proposal to this effect was cleared by the executive committee of the Central Board, in its meeting, held on Tuesday, the bank said in a regulatory filing.
The board approved issuance of Infrastructure Bonds up to an amount of Rs 10,000 crore through a public or private placement during FY23, it said.
On 29 December, SBI had said that the bank was waiting for regulatory approval to raise the Infrastructure Bonds.
Earlier In December, the bank raised Rs 10,000 crore through its maiden infrastructure bond issuance, making it the largest single infra bond sale by any domestic lender.
The fund raised through the bonds is planned to be used to fund long-term infrastructure and affordable housing projects, reports Moneycontrol.
The issue had attracted overwhelming response with an oversubscription of 3.27 times or bids worth Rs 16,366 crore, against the base issue from 143 bids, demonstrating the confidence of the investor class.
Based on the response, the bank had decided to accept Rs 10,000 crore at a coupon rate of 7.51 per cent payable annually for a tenor of 10 years. The coupon represents a spread of 17 basis points over the corresponding government security, indicating a high quality of credit.
(With inputs from PTI)
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