SIDBI to raise up to Rs 5,000 crore through bonds

The Small Industries Development Bank of India (SIDBI) is set to raise up to Rs 5,000 crore through bonds on June 21. According to money market sources, the bond issue includes a base amount of Rs 2,000 crore with an additional Rs 3,000 crore available through a greenshoe option. This option allows the underwriter to sell more bonds if there is higher than expected demand.

The bonds will mature in 3 years, 2 months, and 16 days, with a maturity date of September 10, 2027. Bidding will take place on June 21 from 12:00 PM to 1:00 PM on the National Stock Exchange of India’s (NSE) electronic bidding platform.

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The pay-in date, when the exchange of bonds and money occurs between the issuer and the investor, is set for June 25. The minimum application size for these bonds is Rs 1 lakh, with further investments to be made in multiples of Rs 1 lakh.

Recently, several financial institutions, including AYE Finance, HDB Financial Services, Shriram Finance, Vivriti Capital, and Crest Ventures, also raised funds through bonds. Notably, Shriram Finance raised Rs 100 crore at a coupon rate of 9.10 percent.