SBI Raises Rs 7,500 Crore with Overwhelming Response for Basel III-Compliant Bonds

State Bank of India (SBI) has successfully raised Rs 7,500 crore through the issuance of Basel III-compliant Tier 2 bonds. The issue saw an overwhelming response, attracting bids more than three times the base issue size of Rs 4,000 crore. The bonds, with a coupon rate of 7.33%, have a tenor of 15 years, and a call option after 10 years.

State Bank of India (SBI) announced on Wednesday that it has successfully raised Rs 7,500 crore by issuing Basel III-compliant Tier 2 bonds to qualified institutional bidders.

In a regulatory filing, SBI highlighted that the bond issue drew an overwhelming response from investors, with bids exceeding the base issue size of Rs 4,000 crore by more than three times.

According to SBI Chairman C S Setty, the wide participation from provident funds, pension funds, mutual funds, and banks shows the high level of trust investors place in SBI. The bonds have a tenor of 15 years, a coupon rate of 7.33%, and a call option after 10 years and on each anniversary thereafter.