SBI's maiden infra bond issue for Rs 10,000 cr oversubscribed 3.27 times

10-year paper priced at 7.51%, or about 17 bps above benchmark g-sec yield

The country’s largest lender, State Bank of India, has raised Rs 10,000 crore through its maiden issue of infrastructure bonds, for funding projects in segments such as power and roads. The coupon on the 10-year paper was fixed at 7.51 per cent, or about 17 basis points above the yield on government benchmark bonds.

The base issue size was Rs 5,000 crore, with a green shoe option of Rs 5,000 crore. The issue received 143 bids for over Rs 16,000 crore. Provident funds, mutual funds, insurance firms and corporations were prominent investors. The bank has a AAA credit rating from