New Delhi: The country’s largest public sector lender State Bank of India (SBI) on Wednesday announced that it has raised Rs 7,500 crores at a coupon rate of 7.42% through its first Basel III compliant Tier 2 bond issuance for the current financial year.
The bonds are issued for a tenor of 15 years, with call option after 10 years and each anniversary dates thereafter.
“The issue attracted overwhelming response from investors with bids in excess of Rs. 8,800 crores against the base issue size of Rs. 5,000 crores. The total number of bids received was 70 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, mutual funds, banks etc,” SBI said in a statement.
Based on the response, the Bank has decided to accept Rs. 7,500 crores at a coupon rate of 7.42% payable annually for a tenor of 15 years with a call option after 10 years and each anniversary dates thereafter. The instrument is rated AAA with stable outlook from ICRA Limited and India Ratings & Research Private Limited, SBI added.
C S Setty, SBI Chairman said that wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.