MUMBAI: State Bank of India, the country’s largest lender, has raised Rs 10,000 crore through infrastructure bond sales, at a coupon rate of 7.36%. With the current issuance, which is the fifth in the infra series, the total outstanding long-term bonds issued by the bank is at Rs 49,718 crore, the bank said in a statment.

The issue, fifth in the infra space, has attracted overwhelming response from investors with bids in excess of Rs 19,884 crore or an an oversubscription of around 4x against the base issue size of Rs 5,000 crore, the bank said in a statement Wednesday.

The total number of bids received was 143, indicating wider participation of investors who included provident funds, pension funds, insurance companies, mutual funds, corporates etc.

The proceeds of bond sales will be used in enhancing long-term resources for funding infrastructure and affordable housing segment, the bank said. Based on the response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.36 percent payable annually. This represents a spread of 21 bps over the corresponding G-Sec par curve.

The bonds are rated AAA with stable outlook. The issuance will help the bank in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor, chairman Dinesh Khara said.