MUMBAI: The nation’s largest lender State Bank of India is on a fund-raising spree, mopping up Rs 10,000 crore through an infra bonds sale within a month of a similar amount.

The sixth infrastructure bond issuance has been priced at a coupon rate of 7.36 per cent, at the same level as the fifth issue, the bank said in a statement Wednesday.

The issue attracted an overwhelming response from investors with bids over Rs 18,145 crore and an oversubscription of around 3.6 times against the base issue size of Rs 5,000 crore.

The total number of bids stood at 120 indicating wider participation by provident funds, pension funds, insurance companies, mutual funds, corporates etc.

Based on the good response, the bank has decided to accept Rs 10,000 crore at a coupon rate of 7.36 per cent payable annually for the 15-year money that is rated AAA with stable outlook.

With this issuance, the total outstanding long-term bonds issued by the bank stands at Rs 59,718 crore.

“The proceeds of the bonds will be used to enhance long-term resources for funding infrastructure and affordable housing segment,” the bank said.

Chairman Dinesh Khara said this money will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenure.

The State Bank is not only the largest commercial bank in terms of assets, deposits, branches, customers, and employees but also is the largest mortgage lender with a portfolio of over Rs 7.25 trillion across and so far funded over 30 lakh families.

As of March 2024, the bank has a deposit base of over Rs 49.16 trillion and advances of over Rs 37.67 trillion. SBI has a market share of 26.5 percent in home loans and 19.8 percent in auto loans.