State Bank of India raised INR 100,000 million 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 INR 198,840 million and was oversubscribed by around 4 times against the base issue size of INR 50,000 million. 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, corporates etc. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. Based on the response, the Bank has decided to accept INR 100,000 million at a coupon rate of 7.36% payable annually for a tenor of 15 years.

This represents a spread of 21 bps over the corresponding FBIL G-Sec par curve. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at INR 497,180 million.