SBI - Basel III compliant Tier 2 Bond Issuance

State Bank of India (SBI), country's largest lender, raised Rs. 10,000 crores at a coupon rate of 7.81% through its first Basel III compliant Tier 2 Bond for the current financial year. The bonds are issued for 15 years tenor, with the first call option after 10 years.

The issue attracted an overwhelming response from the investors with bids of Rs. 15,907 crores and was oversubscribed almost 4 times against the base issue size of Rs. 4,000 crores with 98 bids. Shri Dinesh Khara, Chairman SBI expressed that wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest Bank.

Based on the response, the Bank decided to accept Rs. 10,000 crores at a coupon rate of 7.81% payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter. This is the first Tier 2 Bond issuance by the Bank in the current financial year. The Bank has been rated AAA with stable outlook from CRISIL and India Ratings & Research Private Limited for these instruments.

Shares of State Bank of India was last trading in BSE at Rs. 566.20 as compared to the previous close of Rs. 565.35. The total number of shares traded during the day was 426099 in over 7563 trades.

The stock hit an intraday high of Rs. 569.70 and intraday low of 563.90. The net turnover during the day was Rs. 241642039.00.

Source : Equity Bulls

Keywords

StateBankofIndia INE062A01020 SBI FundRaising