Question
How much capital did State Bank of India raise through
its 15-year infrastructure bonds, and at what interest rate were these bonds priced?Solution
State Bank of India raised Rs 10,000 crore through its 15-year infrastructure bonds, which were priced at an interest rate of 7.54 percent. This issuance of bonds is a mechanism through which the bank raises capital by offering these bonds to investors, and the bank agrees to pay interest at the specified rate to the bondholders over the 15-year tenure of the bonds.
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