State Bank of India (SBI) on Wednesday said it raised 4,000 crore Basel III compliant Tier 2 bonds at a coupon rate of 7.57%.
“The issue attracted an overwhelming response from investors with bids of ₹9,647 crore and almost 5 times more subscriptions as against the original issue size of ₹2,000 crore. This is an indicator of investor confidence in the country’s largest bank,” SBI said in a statement.
Based on the feedback, the bank said that it has decided to accept ₹4,000 crore at a coupon rate of 7.57% payable annually for a tenure of 15 years with a call option after 10 years and on anniversary dates thereafter.
“This represents a spread of 14 bps over the 10-year Gsec. The 10-year SDL cut-off as on September 20, 2022 was 7.69% per annum,” the lender said.