State Bank of India (SBI), country’s largest lender, on Wednesday, November 1, raised ₹10,000 crore at a coupon rate of 7.81% through its first Basel III compliant Tier 2 Bond for the current financial year. The bonds are issued for a tenor of 15 years, with the first call option after 10 years.

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The issue attracted an overwhelming response from the investors with bids of ₹15,907 crore and was oversubscribed almost 4 times against the base issue size of ₹4,000 crore with 98 bids, SBI said.

Dinesh Khara, Chairman SBI expressed that “wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.”

This is the first Tier 2 bond issuance by the bank in the current financial year. The bank has been rated AAA with stable outlook from CRISIL and India Ratings & Research Private Limited for these instruments.

(Edited by : Anshul)

First Published:Nov 1, 2023 5:35 PM IST