Mumbai: The largest lender in the nation, State Bank of India, started consultations with market players to raise approximately Rs 10,000 crore ($1.20 billion) through infrastructure bonds, according to two merchant bankers on Tuesday.
As he is not authorized to speak to the media, one of the bankers requested anonymity and stated, "SBI has alerted bankers about its plans to come up with a 10-year or 15-year infrastructure bond issue and will finalize the tenor based on investor feedback." This will be the first infrastructure bond sale in the nation and the lender's first bond issuance of the current fiscal year.
The bankers predicted that SBI would request bids for the bond issue in the first part of July.
SBI did not reply to an email seeking comment from Reuters.
SBI raised Rs 5,000 crore through perpetual bonds in January, with a yield of 8.34%. It sold 15-year infrastructure bonds to raise a total of Rs 20,000 crore during the previous fiscal year.
SBI sold three-year senior unsecured floating-rate notes earlier this month through its London branch, raising $100 million at a spread of 95 basis points over the secured overnight financing rate.
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