State Bank of India (#SBI) has raised ₹ 10,000 Cr 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 & affordable housing segment. The tenor of these bonds is 10 years. The issue attracted overwhelming response from investors with bids of ₹ 16,366 Cr & 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 ₹10,000 Cr 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.