SBI raises Rs 10,000 cr via bonds
image for illustrative purpose
New Delhi: Country’s biggest lender State Bank of India (SBI) on Wednesday said it has raised Rs 10,000 crore from bonds to fund business growth. The fund was raised through Basel-III compliant Tier 2 Bonds carrying a coupon rate of 7.81 per cent. The bonds are issued for a tenor of 15 years, with the first call option after 10 years, SBI said in a statement.
This is the first Tier 2 Bond issuance by the bank in the current financial year, it said. The issue attracted an overwhelming response from the investors with bids of Rs15,907 crore and was oversubscribed almost 4 times against the base issue size of Rs4,000 crore with 98 bids, it said. SBI Chairman Dinesh Khara said: “Wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest bank.”
Based on the response, the bank decided to accept Rs 10,000 crore at a coupon rate of 7.81 per cent payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter, it said.
