SBI mobilises Rs 6,051 crore from Tier II bonds to fund biz growth
The State Bank of India has achieved a remarkable feat by raising Rs 6,051 crore through its latest venture of issuing Tier II bonds compliant with Basel III standards. Boasting a competitive coupon rate of 7.05 percent, these funds are set to fue...
By PTI | Updated:
IANSHINDI
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State Bank of India (SBI) on Tuesday said it has raised Rs 6,051 crore through its second Basel III-compliant Tier II bond issuance at a coupon rate of 7.05 per cent.
The resource mobilised would be used for the business growth of the bank.
The bonds are issued for a tenor of 10 years, with a call option after 5 years and each anniversary date thereafter, SBI said in a statement.
The issue attracted a good response from investors with bids of approximately 2 times against the base issue size of Rs 5,000 crore, it added.
The total number of bids received was 47, indicating participation from a diverse set of qualified institutional bidders, it said, adding that the investors were across provident funds, pension funds, mutual funds, banks, etc.
SBI Chairman CS Setty 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 Rs 6,051 crore at a coupon rate of 7.05 per cent payable annually, it added.
The resource mobilised would be used for the business growth of the bank.
The bonds are issued for a tenor of 10 years, with a call option after 5 years and each anniversary date thereafter, SBI said in a statement.
The issue attracted a good response from investors with bids of approximately 2 times against the base issue size of Rs 5,000 crore, it added.
The total number of bids received was 47, indicating participation from a diverse set of qualified institutional bidders, it said, adding that the investors were across provident funds, pension funds, mutual funds, banks, etc.
SBI Chairman CS Setty said that wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest bank.
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Based on the response, the bank has decided to accept Rs 6,051 crore at a coupon rate of 7.05 per cent payable annually, it added.
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