SBI Raises Rs 7,500 Crore Through Basel III-Compliant Bonds

State Bank of India (SBI) announced raising Rs 7,500 crore through its first Basel III-compliant tier-2 bond issuance of the financial year. The bonds, with a coupon rate of 7.42% for a 15-year tenor, attracted bids exceeding Rs 8,800 crore. Investors included provident funds, pension funds, mutual funds, and banks.

In a significant financial move, the State Bank of India (SBI) announced on Wednesday the raising of Rs 7,500 crore through its inaugural Basel III-compliant tier-2 bond issuance for the current fiscal year.

Featuring a coupon rate of 7.42 percent, the bonds are issued with a 15-year maturity and a call option after 10 years, as per SBI's statement.

The issuance saw overwhelming investor interest, gathering bids surpassing Rs 8,800 crore against the base size of Rs 5,000 crore, indicating broad and diverse participation from entities such as provident funds, pension funds, mutual funds, and banks.

(With inputs from agencies.)