State Bank of India (SBI) on Tuesday said it has raised ₹ 6,051 crore through its second Basel III-compliant Tier II bond issuance at a coupon rate of 7.05%.
SBI Mobilises ₹6,051 Crore from Tier II Bonds to Fund Biz Growth
The bonds are issued for a tenor of 10 years, with a call option after 5 years and each anniversary date thereafter, SBI said in a statement
SBI Mobilises ₹6,051 Crore from Tier II Bonds to Fund Biz Growth
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The resource mobilised would be used for the business growth of the bank.
The bonds are issued for a tenor of 10 years, with a call option after 5 years and each anniversary date thereafter, SBI said in a statement.
The issue attracted a good response from investors with bids of approximately 2 times against the base issue size of ₹ 5,000 crore, it added.
The total number of bids received was 47, indicating participation from a diverse set of qualified institutional bidders, it said, adding that the investors were across provident funds, pension funds, mutual funds, banks, etc.
SBI Chairman CS Setty said that wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest bank.
Based on the response, the bank has decided to accept ₹ 6,051 crore at a coupon rate of 7.05% payable annually, it added.