State Bank of India (SBI) said it had has raised ₹5,000 crore through its second Basel III compliant Additional Tier 1 bond issuance for the current financial year at a coupon rate of 8.34%. The tenor of this bonds is perpetual with a call option after 10 years and every anniversary thereafter.
“The issue attracted overwhelming response from a wide range of investors with 108 bids of ₹5,294 crore and was oversubscribed by about 2.65 times against the base issue size of ₹2,000 crore. The investors were across mutual funds, provident & pension funds, banks and insurance companies,” the bank said in a statement.
Dinesh Khara, Chairman, SBI in a statement said, “The tight pricing and the diverse investor base for an instrument which has its own challenges shows the trust investors place in the bank.”
“Based on the response, the bank has decided to accept bids of ₹5,000 crore at a coupon rate of 8.34% payable annually. The Bonds were rated AA+ with stable outlook by CRISIL and ICRA. The issuance is significant as the bank has been able to diversify and raise long-term non-equity regulatory capital,” SBI said.
