Mumbai : Public sector top lender State Bank of India (SBI), on Wednesday said, has raised Rs. 4,000 crore Basel III compliant Tier 2 bonds on Wednesday, the 21st September, 2022 at coupon rate of 7.57 per cent. The issue attracted overwhelming response from investors with bids of Rs. 9,647 crores, and was oversubscribed by about 5 times against the base issue size of Rs. 2,000 crores. This is an indicator of the trust the investors place on the country’s largest Bank. Based on the response, the Bank has decided to accept Rs. 4,000 crore at a coupon rate of 7.57 per cent payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter. This represents spread of 14 bps over 10 year Gsec. The 10 year SDL cut off was at 7.69% annualized on September 20, 2022. The Bank has AAA (stable) credit rating from domestic credit rating agencies for these instruments.
