SBI raises ₹7,500 Crore via first Basel III tier 2 bonds

29 Aug 2024 , 02:19 PM

SBI, India’s largest lender, raised ₹7,500 Crore in its first Basel III compliant Tier 2 bond sale for the current fiscal year. The bonds, which have a coupon rate of 7.42%, are issued for a 15-year period and have a call option after 10 years and each subsequent anniversary.

Investors offered more than ₹8,800 Crore for the bond issuance, which had a base size of ₹5,000 Crore. Investors from many sectors, including provident funds, pension funds, mutual funds, and banks, have submitted 70 bids, indicating high interest.

Shri C S Setty, Chairman of SBI, emphasised the increased participation and diversity of bids, demonstrating investors’ trust in the bank.

SBI accepted ₹7,500 Crore at 7.42% coupon rate for a 15-year tenor, considering the robust investor response. The bonds, rated AAA with a stable outlook by ICRA Limited and India Ratings & Research Private Limited, strengthen SBI’s market position.

State Bank of India (SBI) on Saturday declared a standalone net profit of ₹17,035 Crore for the quarter ended June 30, 2024, up 0.9% from ₹16,884.29 Crore in the previous year. It was more than the Street’s expectation of ₹16,786 Crore.

At around 11.21 AM, State Bank of India was trading 0.32% higher at ₹811.95, against the previous close of ₹809.40 on NSE. The counter touched an intraday high and low of ₹813.70, and ₹806.95, respectively.

For feedback and suggestions, write to us at [e-mail]