SBI Secures Record Rs 6,051 Crore via Tier II Bonds

State Bank of India successfully raised Rs 6,051 crore through Tier II bonds at a 7.05% coupon rate to fuel business growth. The issuance, spanning 10 years with a call option after 5 years, attracted bids twice the base issue size. Participation included diverse institutional investors.

The State Bank of India (SBI) has successfully raised Rs 6,051 crore through its latest issuance of Basel III-compliant Tier II bonds, offering a 7.05% annual coupon rate. The proceeds are earmarked for SBI's expansion and business growth.

The issuance, which has a 10-year maturity with a call option after 5 years, witnessed bids totaling double the base size of Rs 5,000 crore, indicating strong market confidence. In total, 47 bids were received from a range of qualified institutional investors such as provident funds, pension funds, mutual funds, and banks.

SBI Chairman CS Setty emphasized that the diverse participation in the bond issuance is a testament to the trust that investors place in India's largest bank. The robust response led SBI to accept the full Rs 6,051 crore at the established coupon rate.