SBI's Basel III Compliant Tier 2 (Series 2) Bond Issuance

State Bank of India (SBI), the country's largest lender, raised ₹ 6,051 crores today at a coupon rate of 7.05% through its second Basel III compliant Tier 2 bond issuance for the current financial year. The bonds are issued for a tenor of 10 years, with call option after 5 years and each anniversary date thereafter and are rated AAA with stable outlook from CRISIL Ratings Limited and India Ratings and Research Private Limited.

The issue attracted an excellent response from investors with bids of approximately 2 times against the base issue size of ₹ 5,000 crores. The total number of bids received was 47 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 ₹ 6,051 crores at a coupon rate of 7.05% payable annually for a tenor of 10 years with a call option after 5 years and each anniversary dates thereafter.

Shares of State Bank of India was last trading in BSE at Rs. 1063.95 as compared to the previous close of Rs. 1066.55. The total number of shares traded during the day was 674896 in over 18659 trades.

The stock hit an intraday high of Rs. 1074.00 and intraday low of 1047.20. The net turnover during the day was Rs. 713905995.00.

Source : Equity Bulls

Keywords

StateBankofIndia INE062A01020 SBI FundRaising Basel3Compliant Tier2Bonds