State Bank of India (SBI), the country’s largest lender, raised Rs 6,051 crores at a coupon rate of 7.05 percent through its second 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 date thereafter and are rated AAA with stable outlook from CRISIL Ratings Limited and India Ratings and Research Private Limited.
The issue attracted an excellent response from investors with bids of approximately 2 times against the base issue size of Rs 5,000 crores.
The total number of bids received was 47 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc.
CS 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 6,051 crores at a coupon rate of 7.05 per cent payable annually for a tenor of 10 years with a call option after 5 years and each anniversary dates thereafter.
