State Bank of India said on Wednesday it has raised ₹10,000 crore in infrastructure bonds.

The country’s largest lender said it mobilised the funds at a coupon rate of 7.36 per cent.

The issue attracted bids in excess of ₹19,884 crore, oversubscribed around four times against the base issue size of ₹5,000 crore.

State Bank said it received 143 bids, with the investor base spread across provident funds, pension funds, insurance companies, mutual funds and corporates.

Bond proceeds will be utilised in enhancing long-term resources for funding infrastructure and affordable housing segments.

“Based on the response, the bank has decided to accept ₹10,000 crore at a coupon rate of 7.36 per cent payable annually for a tenor of 15 years. This represents a spread of 21 basis points over the corresponding FBIL (Financial Benchmarks India Pvt Ltd) G-Sec par curve,” it said.

With the current issue, the total outstanding long-term bonds issued by the bank is ₹49,718 crore.

Bank chairman Dinesh Khara said the issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.

Recently, SBI completed the issuance of $100 million senior unsecured floating rate notes having a maturity period of three years.

The fund raising comes at a time credit growth in the banking system remains strong.

SBI expects its advances to rise 15-16 per cent in this fiscal. On the other hand, deposit growth is estimated to come at 12-13 per cent.