SBI raises Rs 9,718 cr via infra bond issue

State Bank of India has raised 9,718 crore through its second infrastructure bonds issue in two months. The bank will pay a coupon rate of 7.70% for the 15-year bond.

“This issuance is significant considering this is the first time an Indian bank is issuing a 15-year long-term infra bond helping the bank in long-term lending to the infrastructure segment. We believe this issue will help develop a long-term infra-bond curve and encourage banks to issue for longer tenors,” the bank said .

The bank will use the proceeds to enhance long-term resources.