State Bank of India (SBI), the country’s largest lender, has successfully raised ₹ 6,051 crores through its second Basel III compliant Tier 2 bond issuance for the current financial year. The bonds, issued for a tenor of 10 years with a call option after 5 years and on each anniversary date thereafter, carry a coupon rate of 7.05%. The bonds have been rated AAA with a stable outlook by CRISIL Ratings Limited and India Ratings and Research Private Limited.
The bond issue received an enthusiastic response from investors, attracting bids approximately twice the base issue size of ₹ 5,000 crores. A total of 47 bids were received, indicating participation from a diverse set of qualified institutional bidders, including provident funds, pension funds, mutual funds, and banks.
Shri C S Setty, Chairman of SBI, remarked that the wide participation and variety of bids reflect the trust investors place in the country’s largest bank.
Based on the overwhelming response, SBI decided to accept ₹ 6,051 crores at the coupon rate of 7.05% payable annually for a tenor of 10 years, with a call option available after 5 years and on each anniversary date thereafter.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).