The executive committee of the central board of State Bank of India (SBI) has approved the proposal to raise up to Rs 10,000 crore by issuing infrastructure bonds in 2022-23 (April-March), the bank said in an exchange filing on Tuesday.
The bonds will be issued through a public issue or a private placement basis. On Thursday, the bank’s board announced that it will meet to seek approval for raising the said money by issuing the bonds.
In early December, the bank had raised Rs 10,000 crore through infrastructure bonds maturing in 10 years at a coupon of 7.51%. The issue, which had a base size of Rs 5,000 crore and a greenshoe option of another Rs 5,000 crore was fully subscribed.
In September, the bank raised Rs 40,000 crore through Basel-III compliant tier-II bonds and nearly Rs 70,000 crore through Basel III-compliant tier-I bonds.
In December, peer HDFC Bank raised Rs 50,000 crore through its tier-II bond. The bank had set a coupon of 7.84% on its Basel-III compliant tier-II bonds maturing in 10 years.