New Delhi: State Bank of India (SBI) on Wednesday said it has raised Rs 7,500 crore through issuance of Basel III-compliant Tier 2 bonds to qualified institutional bidders.
In a regulatory filing, SBI said the issue attracted overwhelming response from investors with bids in excess of 3 times against the base issue size of Rs 4,000 crore.
"The investors were across provident funds, pension funds, mutual funds, banks etc," SBI said.
SBI Chairman CS Setty said the wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest bank.
The bonds are issued for a tenor of 15 years and have a coupon rate of 7.33 percent.
This is the second Basel III-compliant Tier 2 bond issuance for the current fiscal.
"The bank has decided to accept Rs 7,500 crore at a coupon rate of 7.33 per cent payable annually for a tenor of 15 years with call option after 10 years and each anniversary dates thereafter," SBI said.
Basel III is a set of international banking regulations to promote stability in the international financial system.
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