SBI plans to raise Rs 10,000 crore via infrastructure bonds on Wednesday
State Bank of India plans to raise up to Rs 10,000 crore through the issuance of 15-year infrastructure bonds as the country’s largest lender looks to garner long-term capital at a time when demand for loans continues to outstrip growth in deposits.
SBI is aiming to issue infrastructure bonds on Wednesday with a base size of Rs 5,000 crore and a greenshoe option of Rs 5,000 crore, market sources said. The maturity date of the bonds is June 27, 2039, sources said. Bidding will take place from 10:30-11:30 am IST on Wednesday.
The planned sale of infrastructure bonds would mark the first debt issuance for the bank in the current financial year. Funds raised through infrastructure bonds, which have a minimum maturity of 7 years, are exempted from the maintenance of Statutory Liquidity Ratio and Cash Reserve Ratio, which are reserves that banks must maintain from their deposit base.
SBI had informed exchanges last week that its board had approved a proposal to raise funds worth up to Rs 20,000 crore through long-term bonds.
In the previous financial year, the bank had raised Rs 20,000 crore through the issuance of infrastructure bonds.
As on May 31, bank credit growth was at 16.1% year-on-year, while bank deposit growth was at 12.2% over the same period, latest Reserve Bank of India data showed. The data excludes the impact of the merger between HDFC and HDFC Bank.
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