State Bank of India raises Rs 10,000cr through seventh infrastructure bond issuance

The State Bank of India (SBI), the nation’s largest financial institution, successfully raised ₹10,000 crores on 18 November 2024 through its seventh infrastructure bond issuance. This latest effort was met with overwhelming demand, with total bids exceeding ₹11,500 crores—more than double the base issue size of ₹5,000 crores.

The bonds, which have a coupon rate of 7.23% payable annually, are set to mature in 15 years, offering investors a stable and long-term investment option. SBI officials confirmed that 85 bids were received, reflecting a diverse and extensive interest from investors, including provident funds, pension funds, insurance companies, and mutual funds. The bond issuance is part of SBI’s strategic focus on bolstering long-term resources to fund crucial segments like infrastructure development and affordable housing.

In a press statement, the bank’s chairman, C. S. Setty, highlighted the significance of this issuance, emphasizing how it would contribute to developing a long-term bond curve in the Indian financial markets. He also expressed optimism that this successful issuance would encourage other banks to follow suit, enhancing the availability of long-term financing options in the country.

This bond issuance carries the highest credit rating of AAA with a stable outlook, signifying its security and reliability for investors. SBI’s consistent success in raising long-tenor bonds demonstrates its pivotal role in strengthening India’s financial ecosystem, particularly in critical sectors like infrastructure.

With the proceeds allocated to vital areas such as affordable housing, this bond issuance not only reinforces SBI’s standing in the market but also underscores its commitment to contributing to India’s economic development goals.