The bonds are issued for a tenor of 10 years, with call option after 5 years and each anniversary dates thereafter
FinTech BizNews Service
Mumbai, October 18, 2025: State Bank of India (SBI), the country’s largest lender, is the first Public Sector Bank to raise Rs7,500 crores today 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 call option after 5 years and each anniversary dates thereafter and are rated AAA with stable outlook from ICRA Limited and CARE Ratings Limited.
The issue attracted an overwhelming response from investors with bids approximately 3 times against the base issue size of Rs5,000 crores. The total number of bids received was 101 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 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 ₹ 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 dates thereafter.
Earlier this year, the Bank had also raised ₹ 25,000 crores equity via QIP which was oversubscribed by more than 4.5 times. MTN of USD 500 mio at a very fine rate was also raised for a tenor of 5 years during the financial year.
