 "SBI, State Bank Of India")
SBI (Photo: Shutterstock)
The State Bank of India (SBI) raised Rs 7,500 crore on Wednesday at a coupon rate of 7.33 per cent through its second Basel III-compliant Tier-2 bond issuance for the current financial year. The bonds, which have a 15-year maturity with a call option after 10 years and on each anniversary thereafter, received a strong response from investors, the bank said in a statement.
This issuance follows a similar Rs 7,500 crore bond offering on August 28 at a slightly higher coupon rate of 7.42 per cent, a 9-basis point difference. Both issuances carry AAA ratings with a stable outlook from CRISIL Ratings and CARE Ratings.
The bank noted that this second issuance attracted bids more than three times the base issue size of Rs 4,000 crore, with 77 bids from a diverse group of institutional investors, including provident funds, pension funds, mutual funds, and banks.
SBI chairman C. Sreenivasulu Setty said that the broad participation underscores investor confidence in the country’s largest bank.
The first issuance earlier this financial year also saw robust demand, with bids totalling over Rs 8,800 crore against a base issue size of Rs 5,000 crore and 70 bids received. To date, SBI has raised Rs 15,000 crore through Basel III-compliant Tier-2 bonds, helping to bolster its deposit growth, which has lagged behind credit growth.
First Published: Sep 18 2024 | 6:07 PM IST
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