State Bank of India Raises ₹ 6,051 Crores Through Tier 2 Bond Issuance
State Bank of India (SBI) announced today that it successfully raised ₹ 6,051 crores through its second Basel III compliant Tier 2 (Series 2) bond issuance for the current financial year. The bonds carry a coupon rate of 7.05% and have a tenor of 10 years, featuring a call option after 5 years and each anniversary date thereafter. CRISIL Ratings Limited and India Ratings and Research Private Limited have rated the bonds AAA with a stable outlook.The bond issuance garnered significant investor interest, attracting bids approximately 2 times the base issue size of ₹ 5,000 crores. A total of 47 bids were received from a diverse group of qualified institutional investors, including provident funds, pension funds, mutual funds, and banks.
According to Shri C S Setty, Chairman, the broad investor participation reflects the trust placed in the country's largest bank.
The bank finalized the acceptance of ₹ 6,051 crores at a coupon rate of 7.05% payable annually for a tenor of 10 years, with a call option after 5 years and each anniversary date thereafter.
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