State Bank of India raises Rs 4000 cr via Tier 2 bond issue

24 Sep 2022 , 01:31 AM

State Bank of India SBI has raised Rs 4000 crore Basel III compliant Tier 2 bonds on 21 September 2022 at coupon rate of 757 per cent The issue attracted overwhelming response from investors with bids of Rs 9647 crore and was oversubscribed by about 5 times against the base issue size of Rs 2000 crore Based on the response the Bank has decided to accept Rs 4000 crore at a coupon rate of 757 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 769Percentage annualized on 20 September 2022 The Bank has AAA stable credit rating from domestic credit rating agencies for these instruments