SBI Secures Rs 5,000 Cr Through Tier 1 Bonds
These Basel III compliant Tier 1 bonds offered by State Bank of India are non-convertible, taxable, redeemable, subordinated, unsecured, and fully paid-up debentures with a face value of Rs 1 crore each. The bank has announced plans to list these bonds on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India.
The bond issuance witnessed significant investor interest, with bids totaling Rs 5,294 crore, surpassing the base issue size of Rs 2,000 crore by almost 2.65 times. Responding to this overwhelming demand, the public lender decided to accept Rs 5,000 crore. The bonds carry a coupon rate of 8.34 per cent, payable annually, and include a call option after 10 years, with subsequent options on anniversary dates.
CRISIL and India Ratings & Research have assigned a rating of AA+ with a stable outlook to these instruments. State Bank of India, a prominent public sector banking and financial services entity, is currently majority-owned by the Government of India, holding a 57.49 per cent stake as of 30 September 2023.
