SBI Shares Jump In Morning Trade As Bank Raises Rs 10,000 Crore Through 6th Infrastructure Bond Issuance

New Delhi: Shares of State Bank of India (SBI) opened at Rs 854.70 apiece, jumping 0.65 percent higher on Thursday after news of Long Term Bond Issuance. SBI shares closed at Rs 849.10, declining 1.4 percent yesterday. At 11.13 SBI shares were trading higher by Rs 3.60 or 0.42 percent at 852.70.

SBI yesterday said that it has raised Rs 10,000 crores at a coupon rate of 7.36% through its sixth infrastructure bond issuance. 

"The issue attracted overwhelming response from investors with bids in excess of Rs. 18,145 crores and was oversubscribed by around 3.6 times against the base issue size of Rs. 5,000 crores. The total number of bids received was 120 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment," the bank said.

Based on the response, the Bank said that it has decided to accept Rs 10,000 crores at a coupon rate of 7.36% payable annually for a tenor of 15 years. The instrument is rated AAA with stable outlook. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs 59,718 crores.