SBI raises Rs 7,500 crore through bond issue

New Delhi: The State Bank of India on Friday raised Rs 7,500 crore at a coupon rate of 6.93 per cent through its Basel III-compliant Tier 2 bond issuance for fiscal 2025-26.

The bonds are issued for a tenor of 10 years, with a call option after 5 years and each anniversary date thereafter, the bank said in a stock exchange filing.

PSU Watch is now on Whatsapp Channels. Click here to join

"SBI, the country's largest lender, is the first public sector bank to raise Rs 7,500 crore today at a coupon rate of 6.93 per cent through its Basel III compliant Tier 2 bond issuance for the current financial year," the filing said.

The issue attracted an overwhelming response from investors with bids approximately 3 times the base issue size of Rs 5,000 crore.

The total number of bids received was 101, indicating participation from a diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, and banks, among others.

SBI Chairman C S 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 7,500 crore at a coupon rate of 6.93 percent, the release said.

Earlier this year, SBI had raised Rs 25,000 crore equity via QIP, which was oversubscribed by more than 4.5 times.

MTN of USD 500 million at a very fine rate was also raised for a tenor of 5 years during the financial year.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)