SBI Plans to Raise Rs 10,000 Crore Through Infrastructure Bonds in June

India’s largest public sector bank, the State Bank of India (SBI), is planning to raise up to Rs 10,000 crore in June 2025 by issuing infrastructure bonds. These bonds will have a 15-year maturity period.

Details of the Bond Issue

Base size: Rs 5,000 crore

Greenshoe option: Rs 5,000 crore (additional amount if there is strong demand)

Total potential size: Rs 10,000 crore

Expected interest rate (coupon): Between 6.85% and 6.90%

The final interest rate will be decided based on investor demand and market conditions at the time of issuance.

Why This Matters

Infrastructure bonds help banks raise long-term funds, which are then used to finance roads, highways, ports, and other large infrastructure projects in India. These bonds are also attractive to investors because they offer steady returns over a long period.

Background

In the last financial year (FY 2024-25), SBI had already raised Rs 30,000 crore through similar infrastructure bond issues. This new round of funding shows the bank’s continued focus on supporting India’s infrastructure growth.

Conclusion

SBI’s move to raise Rs 10,000 crore in June through long-term infrastructure bonds highlights the growing demand for infrastructure financing in India. The bond issue is expected to attract strong interest from institutional investors, including mutual funds, insurance companies, and pension funds.