MUMBAI: The State Bank of India (SBI) has raised ₹7,500 crore in its second issuance of Basel III-compliant Tier 2 bonds at a coupon rate of 7.33%.
The 15-year bonds, which include a call option after 10 years and on each anniversary thereafter, are rated AAA with a stable outlook. This marks the bank’s second such bond issuance in the current fiscal year.
In a statement issued on Wednesday, the bank said the offering attracted an overwhelming response from investors, with bids amounting to over 3 times the base issue size of ₹4,000 crore.
A total of 77 bids were received from a diverse group of qualified institutional buyers, including provident funds, pension funds, mutual funds, and banks.
Based on the strong response, SBI decided to accept ₹7,500 crore at a coupon rate of 7.33%, payable annually over a tenor of 15 years, with the option to call the bonds after 10 years and on subsequent anniversaries.
Commenting on the successful debt-raising effort, Chairman C.S. Setty said, “The wider participation and heterogeneity of bids demonstrate the trust investors place in the country’s largest bank.”