State Bank of India Raises ₹ 6,051 Crores via Tier 2 Bonds
Filing Summary
State Bank of India (SBI) has raised ₹ 6,051 crores through its second Basel III compliant Tier 2 bond issuance for the current financial year. The bonds, issued at a coupon rate of 7.05%, have a tenor of 10 years with a call option after 5 years. The issuance attracted bids approximately twice the base issue size of ₹ 5,000 crores, with participation from 47 qualified institutional bidders. The bonds are rated AAA with a stable outlook by CRISIL Ratings Limited and India Ratings and Research Private Limited.
State Bank of India (SBI) has successfully raised ₹ 6,051 crores through its second Basel III compliant Tier 2 bond issuance for the current financial year. The bonds were issued at a coupon rate of 7.05% and have a tenor of 10 years, with a call option available after 5 years and on each anniversary date thereafter.
The bond issuance attracted significant interest from investors, receiving bids approximately twice the base issue size of ₹ 5,000 crores. A total of 47 bids were received, indicating participation from a diverse set of qualified institutional bidders, including provident funds, pension funds, mutual funds, and banks.
The bonds have been rated AAA with a stable outlook by CRISIL Ratings Limited and India Ratings and Research Private Limited. This rating reflects the perceived creditworthiness and stability of the issuance.
State Bank of India is the largest lender in the country, focusing on providing a wide range of banking and financial services. The bank continues to strengthen its capital base through strategic financial instruments like Tier 2 bonds, aligning with regulatory requirements and supporting its growth objectives.