State Bank of India (SBI) has raised Rs 5,000 crore through its first Basel III compliant Additional Tier 1 bond issuance for the current financial year at a coupon rate of 7.98%. The tenor of these bonds is perpetual with call option after 10 years and each anniversary date thereafter and are rated AA+ with stable outlook from CRISIL Ratings and CARE Ratings.

The issue attracted an overwhelming response from investors with bids in excess of 3.5 times against the base issue size of Rs 2,000 crore. The total number of bids received was 108 indicating participation from diverse set of qualified institutional bidders. The participants were across provident funds, pension funds, insurance companies, mutual funds, NBFCs, banks etc. 

Based on the response, the Bank has decided to accept Rs 5,000 crore at a coupon rate of 7.98% payable annually. The issuance is also significant as the Bank has been able to diversify and raise long-term non-equity regulatory capital.

State Bank of India is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.