State Bank of India (SBI) has raised ₹6,051 crore through its second Basel III-compliant Tier 2 bond issuance in the current financial year, at a coupon rate of 7.05%.
The bonds carry a tenor of 10 years, with a call option after five years and on every anniversary thereafter. The issue has been rated AAA with a stable outlook by CRISIL Ratings and India Ratings and Research Pvt. Ltd.
The offering saw overwhelming response from investors, garnering bids worth nearly twice the base issue size of ₹5,000 crore. A total of 47 bids were received, reflecting participation from a diverse set of qualified institutional investors, including provident funds, pension funds, mutual funds and banks.
SBI Chairman C. S. Setty said the wide participation and varied investor base underscored the trust reposed in the country’s largest lender. Based on the robust response, the bank decided to retain ₹6,051 crore.