SBI Raises Rs 10,000 Crore Through Bonds - Business News
Nov 01, 2023 18:45
State Bank of India (SBI) raised Rs 10,000 crore through Tier 2 Bonds with a 7.81% coupon rate for business growth. The issue was oversubscribed, reflecting investor confidence in the bank.
Photograph: Shailesh Andrade/Reuters
New Delhi, Nov 1 (PTI) Country's biggest lender State Bank of India (SBI) on Wednesday said it has raised Rs 10,000 crore from bonds to fund business growth.
The fund was raised through Basel III compliant Tier 2 Bonds carrying a coupon rate of 7.81 per cent.
The bonds are issued for a tenor of 15 years, with the first call option after 10 years, SBI said in a statement.
This is the first Tier 2 Bond issuance by the bank in the current financial year, it said.
The issue attracted an overwhelming response from the investors with bids of Rs 15,907 crore and was oversubscribed almost 4 times against the base issue size of Rs 4,000 crore with 98 bids, it said.
SBI Chairman Dinesh Khara said, "Wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest bank."
Based on the response, the bank decided to accept Rs 10,000 crore at a coupon rate of 7.81 per cent payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter, it said.
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