State Bank of India (SBI) raised . ₹7,500 crore on Wednesday at a coupon rate of 7.33 per cent through its second Basel III compliant Tier-2 bond issuance for the current financial year.
The coupon rate is nine basis points lower than the first issuance.
The bonds, which are rated AAA with stable outlook by CRISIL Ratings and CARE Ratings, have a tenor of 15 years, with call option after 10 years and each anniversary date thereafter, the lender said in a statement.
The bank said the issue attracted a robust response from investors, with bids in excess of three times against the base issue size of ₹4,000 crore. The total number of bids received was 77, indicating participation from a diverse set of qualified institutional bidders -- provident funds, pension funds, mutual funds, banks etc., it added.
C Sreenivasulu Setty, Chairman, SBI, said wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.
SBI had raised. ₹7,500 crore on August 28, 2024, at a coupon rate of 7.42 per cent through its first Basel III compliant Tier-2 bond issuance of 15-years tenor.
The first issue attracted a good response from investors, with bids in excess of . ₹8,800 crore against the base issue size of .₹5,000 crore. The total number of bids received was 70.
In the current financial year, the bank has mopped up ₹15,000 crore via Basel III compliant Tier-2 bond to supplement deposit growth, which is lagging credit growth.
Long-Term Bond Issuance
The bank had raised ₹10,000 crore each in June and July, 2024, both at a coupon rate of 7.36 per cent via issuance of Senior Unsecured Long Term Bond.
So, including through issuance long term bonds and Tier-2 bonds, SBI has raised ₹35,000 crore in the current financial year so far.