State Bank of India raises Rs 10,000 cr via Tier 2 Bonds

State Bank of India (SBI) on Wednesday raised Rs 10,000 crore at a coupon rate of 7.81 percent through its first Basel III compliant Tier 2 Bond for the current financial year.

State Bank of India (SBI) on Wednesday raised Rs 10,000 crore at a coupon rate of 7.81 percent through its first Basel III-compliant Tier 2 bond for the current financial year.

SBI said that the bonds are issued for a tenor of 15 years, with the first call option after 10 years."The issue attracted an overwhelming response from the investors with bids of Rs. 15,907 crores and was oversubscribed almost four times against the base issue size of Rs 4,000 crores with 98 bids," SBI said. In this regard, Dinesh Khara, Chairman of SBI said, "Wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest bank."Based on the response, the SBI decided to accept Rs 10,000 crores at a coupon rate of 7.81 percent payable annually for a tenor of 15 years, with a call option after 10 years and on anniversary dates thereafter.

"This is the first Tier 2 bond issuance by the bank in the current financial year. The bank has been rated AAA with a stable outlook from CRISIL and India Ratings and Research Private Limited for these instruments," an official statement said. (ANI)