SBI raises Rs 7,500 crore through tier-II bonds
The issue attracted overwhelming response from investors with bids in excess of Rs 8,800 crore against the base issue size of Rs 5,000 crore.
The country's biggest lender State Bank of India (SBI) on Wednesday announced raising of Rs 7,500 crore through its first Basel III-compliant tier-2 bond issuance for the current financial year.
The bonds with a coupon rate of 7.42 per cent are issued for a tenor of 15 years, with call option after 10 years and each anniversary dates thereafter, SBI said in a statement.
The issue attracted overwhelming response from investors with bids in excess of Rs 8,800 crore against the base issue size of Rs 5,000 crore, it said.
The total number of bids received was 70 indicating wider participation with heterogeneity of bids, it said, adding that the investors were across provident funds, pension funds, mutual funds, banks, etc.
Newly appointed SBI Chairman C S Setty said 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 Rs 7,500 crore at a coupon rate of 7.42 per cent payable annually for a tenor of 15 years.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SIP+SWP: Rs 15,000 monthly SIP investment for 20 years and Rs 100,000 monthly income for 45 years; know how it is possible
Hindenburg vs Adani Saga: Silent on fresh allegations, Madhabi Puri Buch reportedly cancels appearance at Mumbai event
15x15x15 Formula: In how many years Rs 15,000 monthly SIP can grow to over Rs 1 crore; see calculations
05:25 PM IST