State Bank of India (SBI) on Wednesday raised Rs 10,000 crore through its fifth infrastructure bond issuance. Funds were raised at a coupon rate of 7.36%, payable annually for a tenure of 15 years.

The issue attracted an overwhelming response from investors with bids in excess of Rs 19,884 crore, and was subscribed by around four times against the base issue size of Rs 5,000 crore, SBI said in a regulatory filing.

The bank received 143 bids, indicating wider participation with heterogeneity of bids. Investors were across provident funds, pension funds, insurance companies, mutual funds, and corporates, the release said.

“Based on the response, the bank has decided to accept Rs 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,” it said.

The instrument is rated AAA with a stable outlook. With the current issuance, the total outstanding long-term bonds issued by the bank have risen to Rs 49,718 crore.

SBI will utilise the proceeds in enhancing long-term resources for funding the infrastructure and affordable housing segments.

SBI chairman Dinesh Khara said this issuance will help develop a long-term bond curve and encourage other banks to issue bonds of longer tenure.