The country’s largest lender raised Rs. 7,500 crores today at a coupon rate of 7.33% through its second Basel III compliant Tier 2 bond issuance for the current financial year.
FinTech BizNews Service
Mumbai, September 18, 2024: State Bank of India (SBI), the country’s largest lender, raised Rs. 7,500 crores today at a coupon rate of 7.33% through its second 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 and are rated AAA with stable outlook from CRISIL Ratings Limited and CARE Ratings Limited.
The issue attracted an overwhelming response from investors with bids in excess of 3 times against the base issue size of Rs. 4,000 crores. The total number of bids received was 77 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc.
Shri C S Setty, Chairman, State Bank of India 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 7.33% payable annually for a tenor of 15 years with a call option after 10 years and each anniversary dates thereafter.
