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

22 Sep 2022 , 08:58 AM

State Bank of India (SBI) has raised Rs. 4,000 crore Basel III compliant Tier 2 bonds on 21 September, 2022 at coupon rate of 7.57 per cent. The issue attracted overwhelming response from investors with bids of Rs. 9,647 crore, and was oversubscribed by about 5 times against the base issue size of Rs. 2,000 crore. 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 20 September 2022. The Bank has AAA (stable) credit rating from domestic credit rating agencies for these instruments.Powered by Capital Market – Live News