SBI Raises ₹6,051 Crore via Basel III Tier II Bonds at 7.05% Coupon
Strong Investor Demand Drives Oversubscription
New Delhi, March 18: State Bank of India (SBI) on Tuesday announced that it has successfully raised ₹6,051 crore through its second Basel III-compliant Tier II bond issuance, offering a coupon rate of 7.05 percent.The bond issue witnessed strong investor interest, receiving bids worth nearly two times the base issue size of ₹5,000 crore. The bank confirmed that a total of 47 bids were submitted, reflecting participation from a wide spectrum of qualified institutional investors.
Diverse Institutional Participation
According to SBI, the investor base included provident funds, pension funds, mutual funds, and banks, indicating broad-based institutional confidence in the offering.SBI Chairman CS Setty stated that the strong and diverse participation highlights the trust investors place in the country’s largest lender.
Bond Structure and Key Terms
The bonds have been issued with a tenure of 10 years and include a call option after 5 years, which can be exercised on each subsequent anniversary.Following the robust response, SBI decided to accept ₹6,051 crore at a coupon rate of 7.05 percent, with interest payable annually.
Funds to Support Business Growth
The bank said the proceeds from the issuance will be utilized to support its business growth initiatives, strengthening its capital base in line with Basel III requirements.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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