NEW DELHI: State Bank of India (SBI) has raised Rs 4,000 crores Basel III compliant Tier 2 bonds at a coupon rate of 7.57 per cent.
The bank in a statement issued on Wednesday said that the issue attracted an overwhelming response from investors with bids of Rs 9,647 crores and was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore.
Based on the response, the bank has decided to accept Rs 4,000 crore at a coupon rate of 7.57 per cent payable annually for a tenor of 15 years with a call option after 10 years. The bank managed to raise the fund at a spread of 14 bps over 10-year government bonds.
The bank has AAA (stable) credit rating from domestic credit rating agencies for these instruments.