Mumbai: The State Bank of India (SBI), the country's largest lender, has initiated discussions with market participants to raise approximately Rs 10,000 crore ($1.20 billion) through infrastructure bonds, reported Reuters on Tuesday, citing two merchant bankers.
This will be SBI's first bond issuance and the country's first infrastructure bond sale of the financial year.
"SBI has alerted bankers about its plans to come up with a 10-year or 15-year infrastructure bond issue and will finalise the tenor based on investor feedback," one of the bankers said, requesting anonymity as he is not authorised to speak to the media.
SBI is expected to invite bids for the bond issue in early July, the bankers stated, the report said.
In January, SBI raised Rs 5,000 crore through perpetual bonds at an 8.34 percent coupon rate. Last financial year, it raised a total of Rs 20,000 crore through the sale of 15-year infrastructure bonds.
Earlier this month, SBI raised $100 million through its London branch by selling three-year senior unsecured floating-rate bonds, which were sold at a spread of 95 basis points above the secured overnight financing rate (SOFR).
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