State Bank of India (SBI), the country’s largest lender, raised ₹4,691 crore today at a coupon rate of 7.75% through its first Basel III compliant Additional Tier 1 bond issuance for the current financial year. The tenor of these bonds is perpetual with call option after 5 years and each anniversary date thereafter and are rated AA+ with stable outlook from CRISIL Ratings Limited and CARE Ratings Limited.
This issue attracted a robust response from investors with bids of more than 2 times against the base issue size of ₹ 3,000 crores. The total number of bids received was 89 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc.
Shri C S Setty, Chairman 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 ₹4,691 crore at a coupon rate of 7.75% payable annually. This issuance is also significant as the Bank has been able to diversify and raise long term non-equity regulatory capital.
