Mumbai : State Bank of India (SBI), the country’s largest
lender, raised ₹4,691 crore today at a coupon rate of 7.75% through its first Basel
III compliant Additional Tier 1 bond issuance for the current financial year. The
tenor of these bonds is perpetual with call option after 5 years and each
anniversary date thereafter and are rated AA+ with stable outlook from CRISIL
Ratings Limited and CARE Ratings Limited.
This issue attracted a robust response from investors
with bids of more than 2 times against the base issue size of ₹ 3,000 crores.
The total number of bids received was 89 indicating participation from diverse
set of qualified institutional bidders. The investors were across provident
funds, pension funds, mutual funds, banks etc.
Shri C S Setty, Chairman said that wider participation
and heterogeneity of bids demonstrated the trust investors place in the
country’s largest Bank.
Based on the response, the Bank has decided to accept ₹4,691
crore at a coupon rate of 7.75% payable annually. This issuance is also
significant as the Bank has been able to diversify and raise long term
non-equity regulatory capital.