State Bank of India (SBI) said it acquired Rs 10,000 crore through long-term structures bonds, provid- ing a coupon rate of 7.54 percent. The proceeds of bonds, having 15-year maturity, will be used for funding infrastructure and the affordable housing section, SBI declared in a release.
The issue attracted bids worth Rs 21,698 crore and was oversubscribed by 4.34 times against the base issue size. The total number of bids received was 115 from various categories of investors, including provident funds, pension funds, insurance companies, mutual funds and corporates.
However, the lender accepted Rs 10,000 crore of bids at a coupon rate of 7.54 percent, payable annually. This represents a spread of 13 basis points (bps) over the corresponding Financial Benchmarks India Pvt Ltd (FBIL) government securities (G-Sec) par curve. One basis point is one-hundredth of a percentage point.