SBI's Senior Unsecured Long Term Bond Issuance

State Bank of India (SBI), the country's largest lender, raised ₹10,000 crores today at a coupon rate of 7.23% through its seventh infrastructure bond issuance. The issue attracted overwhelming response from investors with bids in excess of ₹11,500 crores and was oversubscribed in excess of 2 times against the base issue size of ₹5,000 crores. The total number of bids received was 85 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds etc. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment.

Based on the response, the Bank has decided to accept ₹10,000 crores at a coupon rate of 7.23% payable annually for a tenor of 15 years. The instrument is rated AAA with stable outlook.

This issuance is also very significant as the Bank has been successful in raising long duration bonds successively. SBI Chairman Shri C S Setty said that this issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.

Shares of State Bank of India was last trading in BSE at Rs. 802.00 as compared to the previous close of Rs. 813.70. The total number of shares traded during the day was 467072 in over 14838 trades.

The stock hit an intraday high of Rs. 820.10 and intraday low of 800.10. The net turnover during the day was Rs. 378579964.00.

Source : Equity Bulls

Keywords

StateBankofIndia INE062A01020 SBIN FundRaising InfrastructureBonds