State Bank of India (SBI) said that it has raised INR 10,000 crores by issuing its first-ever infrastructure bond issuance, which was at a coupon rate of 7.51%.

According to State Bank of India, it is the largest single infrastructure bond issued by any Indian bank.

The public sector bank plans to use the raised amount to improve long term resources for funding infrastructure as well as the affordable housing segment.

The tenor of the bonds is 10 years, said State Bank of India, while adding that the infrastructure bond issue drew bids of INR 16,366 crores from investors and was oversubscribed by nearly 3.27 times against the base issue.

The issuance had 143 bids, revealed the Indian lender.

Dinesh Khara — State Bank of India chairman said: “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.”

  Banking industry news, Dinesh Khara, India, State Bank of India