SBI to raise Rs 20,000 Cr through bonds for affordable housing, infra

Investment in Real estateBy Accommodation Times Bureau


To finance affordable housing and infrastructure projects through long-term bonds, The country’s largest bank State Bank of India on Wednesday said its board has indicated to raise Rs 20,000 crore.

In BSE filing SBI, said, “The executive committee of the Central Board in its meeting held today has inter alia approved the proposal for issuance of long-term bonds of Rs 20,000 crore for the financing of infrastructure and affordable housing in the domestic and overseas market in FY 2017-18 and FY 2018-19.”

The bank did not specify whether the borrowing would be in foreign currency or rupee denomination.

SBI had earlier announced plans to raise up to USD 2 billion by issuing bonds in the US dollar or other convertible currency to fund overseas expansion.

Through public offer and/or private placement of senior unsecured notes in US dollar or any other convertible currency the fundraising would take place during 2017-18 and 2018-19, it said.

However, the realty sector is facing slowdown and with the aid of affordable housing segment, it gained momentum after the government provided infrastructure to it in the last year’s budget.

Under the Pradhan Mantri Awas Yojna, the government is also providing interest subsidy to buyers on the low-cost homes.

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