State Bank of India (SBI), India’s largest lender, has successfully raised ₹10,000 crore through its fifth infrastructure bond issuance, which was oversubscribed by approximately 4 times against the base issue size of ₹5,000 crore. The bond issuance, conducted at a coupon rate of 7.36% per annum, attracted bids amounting to ₹19,884 crore from a diverse group of investors.
According to SBI, the substantial oversubscription with 143 bids reflects widespread participation across various financial institutions including provident funds, pension funds, insurance companies, mutual funds, and corporations. The funds raised will strengthen SBI’s long-term resources and support investments in infrastructure and affordable housing sectors.
The infrastructure bonds issued by SBI have been accorded the highest credit ratings of ‘AAA’ with a stable outlook by India Ratings and ICRA, reinforcing investor confidence in the bank’s financial stability and creditworthiness.
SBI Chairman, Dinesh Khara highlighted that issuance will help develop a robust long-term bond market in India, setting a precedent for other banks to issue bonds with longer tenors. He highlighted the strategic importance of such issuances in fostering a conducive environment for infrastructure financing.
Shares of State Bank of India closed higher at ₹845.05 on Wednesday, reflecting a positive market sentiment following the successful bond issuance. As of March 2024, SBI maintains a strong deposit base exceeding ₹49.16 lakh crore, with significant market shares in home loans (26.5%) and auto loans (19.8%).