The country’s largest lender -- State Bank of India (SBI) – on Friday raised Rs 7,500 crore at a coupon rate of 6.93% through its Basel III compliant Tier 2 bond issuance for the current financial year. The bonds are issued for a tenor of 10 years, with the call option after 5 years and each anniversary date thereafter. The bond has been rated AAA with stable outlook from ICRA Limited and CARE Ratings Limited.
The issue attracted an overwhelming response from investors with bids around 3 times against the base issue size of Rs 5,000 crore. The total number of bids received was 101 indicating participation from a diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc.
C S Setty, Chairman said that wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.
Based on the response, the bank has decided to accept Rs 7,500 crores at a coupon rate of 6.93% payable annually for a tenor of 10 years with a call option after 5 years and each anniversary date thereafter.
Earlier this year, the bank had also raised Rs 25,000 crores equity via QIP which was oversubscribed by more than 4.5 times. It has also raised $500 million through medium-term-notes for a tenor of 5 years during the financial year.
