State Bank of India (SBI) has raised ₹10,000 crores through its first Basel III compliant Tier 2 Bonds issuance in the current fiscal at a coupon rate of 7.81 per cent
The bonds are for a tenor of 15 years, with the first call option after 10 years, per the Bank’s statement.
Investors put in 98 bids aggregating ₹15,907 crores. The issue was oversubscribed almost 4 times against the base issue size of . ₹4,000 crores, the country’s largest Bank said.
Dinesh Kumar Khara, Chairman, SBI, said the wider participation and heterogeneity of bids demonstrated the trust investors place in the Bank.
“Based on the response, the Bank decided to accept ₹10,000 crores 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.