SIDBI Raises Rs 5,607 Crore Through 5-Year Bonds at 8.17% Rate
The Small Industries Development Bank of India (SIDBI) has raised ₹5,607 crore through five-year bonds at a coupon rate of 8.17%. The fundraising comes amid strong investor demand and follows a similar bond issuance by NABARD earlier in the week.
What happened
The Small Industries Development Bank of India (SIDBI) successfully raised ₹5,607 crore through a bond issuance featuring a five-year tenor. The bonds were secured at a coupon rate of 8.17%.
Although SIDBI had originally planned to raise up to ₹6,000 crore, the institution restricted its final acceptance to ₹5,607 crore. It rejected bids that demanded yields exceeding its desired cutoff rate, despite attracting total bids worth over ₹13,300 crore.
This issuance occurred during a period of a domestic government bond market rally, where the 10-year benchmark government bond yield fell to 7.18% following a correction in crude oil prices. Earlier in the week, the National Bank for Agriculture and Rural Development (NABARD) also raised ₹6,000 crore via five-year bonds at an 8.27% coupon rate.
Important dates
| Bond Fundraising Date | 4 November 2026 |
|---|---|
| SIDBI Formation Date | 2 April 1990 |
| NABARD Formation Date | 12 July 1982 |
📌 Static GK links
- SIDBI Full Form: Small Industries Development Bank of India
- SIDBI Headquarters: Lucknow, Uttar Pradesh
- SIDBI Chairman: Manoj Mittal
- SIDBI Establishment Date: 2 April 1990
- NABARD Establishment Date: 12 July 1982
What candidates should do
- Note down the exact amount raised, tenor, and coupon rate for SIDBI's bond issuance for current affairs revision.
- Compare key financial parameters such as coupon rates and tenors between major development finance institutions like SIDBI and NABARD.
- Revise static facts related to SIDBI and NABARD, including their headquarters, formation dates, and current leadership.
PrepZen analysis
The successful bond issuance by SIDBI highlights strong liquidity and robust investor demand in India's domestic debt market, evidenced by over ₹13,300 crore in total bids. By capping the amount raised at ₹5,607 crore and rejecting higher yield demands, SIDBI demonstrated disciplined borrowing strategies amidst fluctuating benchmark government bond yields driven by falling crude oil prices.
For banking and finance aspirants, this news is crucial because questions regarding corporate bond issuances, coupon rates, and institutional fundraisings frequently appear in General Awareness sections of exams like IBPS, SBI, and RBI.
Practice questions
Q1. How much amount was raised by SIDBI through its recent five-year bond issuance?
Q2. What is the coupon rate on the five-year bonds issued by SIDBI?
Q3. Where is the headquarters of the Small Industries Development Bank of India (SIDBI) located?
Funds were secured through five-year bonds at an 8.17% coupon rate.
Earlier, NABARD raised ₹6,000 crore via five-year bonds at 8.27%.
🎯 Key Point: SIDBI raised ₹5,607 crore through five-year bonds at 8.17% rate.
FAQs
How much did SIDBI raise through its recent bond issuance?
SIDBI raised ₹5,607 crore through five-year bonds.
What was the coupon rate for SIDBI's five-year bonds?
The bonds were issued at a coupon rate of 8.17%.
Who is the Chairman of SIDBI?
Manoj Mittal serves as the Chairman of SIDBI.
When was SIDBI formed?
SIDBI was established and operationalized on April 2, 1990.
How did NABARD's recent bond issuance compare to SIDBI's?
NABARD raised ₹6,000 crore through five-year bonds at a slightly higher coupon rate of 8.27%.
Sources and references
- magzter.com (www.magzter.com)
- dealroom.co (dealroom.co)
- business-standard.com (www.business-standard.com)
- ventureintelligence.com (news.ventureintelligence.com)
Prepared by PrepZen for exam preparation. Consult the linked sources for original announcements and current details. Corrections policy. Spotted an error? Write to prepzen.app@gmail.com.
Practice Quiz — 5 November 2026
Q1. Which entity has constituted the Technical Consultative Committee for Financial Markets (TCCFM) as of November 2026?
Q2. What was the coupon rate for the ₹5,607 crore five-year bonds raised by SIDBI?
Q3. Who has been appointed as the Managing Director & CEO of NPCI Tech Solutions Limited (NTSL)?
Q4. In which district of Jammu & Kashmir was a new Seismological Observatory inaugurated in November 2026?
Q5. According to the QS Asia University Rankings 2027, what is the rank of IIT Delhi, India's highest-ranked institution?
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