State Bank of India (SBI), the country's largest lender, has raised Rs. 10,000 crores through its maiden infrastructure bond issuance on Friday at coupon rate of 7.51%. 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 affordable housing segment. The tenor of these bonds is 10 years. The issue attracted overwhelming 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 investor class. This also very clearly demonstrates the maturity of Indian investors in their selection of Issuers of such instruments.
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 spread of 17 bps over the corresponding Government of India Security, indicates high quality of credit.
The Bank has 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.
SBI Chairman Shri Dinesh Khara said that "Development of infrastructure is a key priority for the country and SBI, being the largest lender, has been in the forefront for advancement of social, green and other infrastructure projects. These long term bonds will help the bank in furthering the cause of infrastructure development".
Shares of State Bank of India was last trading in BSE at Rs. 607.55 as compared to the previous close of Rs. 608.05. The total number of shares traded during the day was 176480 in over 3549 trades.
The stock hit an intraday high of Rs. 609.60 and intraday low of 604.55. The net turnover during the day was Rs. 107208800.00.