SBI raises Rs 7,500 cr via tier-II bonds

New Delhi, Aug 28 (PTI) The country’s biggest lender State Bank of India (SBI) on Wednesday announced raising of Rs 7,500 crore through its first Basel III-compliant tier-2 bond issuance for the current financial year.

The bonds with a coupon rate of 7.42 per cent are issued for a tenor of 15 years, with call option after 10 years and each anniversary dates thereafter, SBI said in a statement.

The issue attracted overwhelming response from investors with bids in excess of Rs 8,800 crore against the base issue size of Rs 5,000 crore, it said.

The total number of bids received was 70 indicating wider participation with heterogeneity of bids, it said, adding that the investors were across provident funds, pension funds, mutual funds, banks, etc.

Newly appointed SBI Chairman C S Setty said wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest bank.

Based on the response, the bank has decided to accept Rs 7,500 crore at a coupon rate of 7.42 per cent payable annually for a tenor of 15 years with a call option after 10 years and each anniversary dates thereafter, it added.