State Bank of India has raised Rs 7,500 crore by issuing Basel III compliant tier 2 bonds at a 7.42% rate per annum. This is SBI's first such bond issuance this year. The bonds are issued for 15 years, with a call option after 10 years and each anniversary date thereafter, the bank said.
The country's largest lender received 70 bids for over Rs 8,800 crores against the base issue size of Rs 5,000 crore. Provident funds, pension funds, mutual funds and even other banks evinced interest on the issue, SBI said.
SBI's new chairman CS Setty said that wider participation and heterogeneity of bids demonstrated the trust investors showed in SBI. The instrument is rated AAA with stable outlook from ICRA and India Ratings & Research.
The country's largest lender received 70 bids for over Rs 8,800 crores against the base issue size of Rs 5,000 crore. Provident funds, pension funds, mutual funds and even other banks evinced interest on the issue, SBI said.
SBI's new chairman CS Setty said that wider participation and heterogeneity of bids demonstrated the trust investors showed in SBI. The instrument is rated AAA with stable outlook from ICRA and India Ratings & Research.
