The country’s largest lender, State Bank of India, announced on Wednesday that it has raised an amount of Rs 4,000 crore through tier-2 bonds at a cutoff rate of 7.57 per cent.
“The issue attracted an overwhelming response from investors with bids of Rs 9,647 crore and was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore,” the bank said.
The bonds have a tenure of 15 years with a call option after 10 years, SBI said, adding that the instruments are rated AAA (stable) by credit rating firms.
The public sector bank had sold additional tier-1 bonds worth Rs 6,872 crore on September 7 at a cutoff rate of 7.75 per cent, the lowest for any bank issuing AT-1 bonds at that point in the current financial year.
In late July, SBI’s board had approved plans to raise up to Rs 11,000 crore via additional tier-I and tier-II bonds to meet regulatory requirements and support business growth.