SBI raises Rs 4,691 crore via Tier 1 bonds at 7.75% coupon

State Bank of India (SBI), the country’s largest lender, has raised Rs 4,691 crore by selling Tier 1 bonds to domestic investors at a coupon rate of 7.75%. This is the bank's first Basel III compliant Additional Tier 1 bond for the current financial year.


The bonds have a five year call option when SBI can buy back the bond and with each anniversary date thereafter, the bank said.



SBI chairman C S Setty, said that the bond attracted a wide participation of investors with did kinds bids demonstrating the trust investors place in the country’s largest bank.


"This issue attracted a robust response from investors with bids of more than 2 times against the base issue size of Rs 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," SBI said in a statement.


Based on the response, SBI accepted Rs 4,691 crore at a coupon rate of 7.75% payable annually.
The bonds are rated AA+ with stable outlook from Crisil and Care Ratings.