The effective yield would be 17 basis points above the 7.37 per cent 2014 government security.
Though it is not yet known who are the subscribers to the bond, it is learnt that banks, mutual funds and insurance companies have shown great interest in investing into the issue.
The issue is the first of its kind after the regulators allowed multilateral agencies to raise funds from the local market. HSBC and I-Sec was the lead arrangers to the issue while Bank of India and Union Bank of India are the co-arrangers.
Pertinent is to note here that the regulators had allowed multilateral development banks to raise resources from the domestic market through rupee-bonds as part of measures for further liberalisation.