SBI increases Rs 3,717 crore via bond issuance

The State Bank of India (SBI), the country's largest lender, raised Rs 3,717 crore through its third Basel III compliant Additional Tier 1 bond issuance in the current financial year on Wednesday, at a coupon rate of 8.25 percent.

The proceeds of the bonds will be utilized in augmenting Additional Tier 1 Capital and the overall capital base of the bank and strengthen capital adequacy in accordance with RBI guidelines.

The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter.

The issue attracted an overwhelming response from investors with bids of Rs 4,537 crores and was oversubscribed by about 2.27 times against the base issue of Rs 2,000 crore, a statement issued by the SBI said.

The total number of bids was 53, indicating wider participation. The investors were across provident & pension funds and insurance companies, the statement added.

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