State Bank of India (SBI) said it had raised ₹10,000 crore at a coupon rate of 7.36% through its fifth infrastructure bond issuance.

“The issue attracted overwhelming response from investors with bids in excess of ₹19,884 crore and was oversubscribed by around four times against the base issue size of ₹5,000 crore,” the bank said in a statement.

“The total number of bids received was 143 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, insurance companies, mutual funds and corporates,” it added. 

The proceeds of bonds will be utilised in enhancing long-term resources for funding infrastructure and affordable housing segment.

“Based on the response, the bank has decided to accept ₹10,000 crore at a coupon rate of 7.36% payable annually. This represents a spread of 21 bps over the corresponding FBIL G-Sec par curve,” SBI said. 

With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at ₹49,718 crore.

SBI Chairman Dinesh Khara said that this issuance would help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.