State Bank of India (SBI) has raised Rs 4,000 crore through Basel III compliant Tier 2 bonds on September 21, 2022 at coupon rate of 7.57 per cent. The issue attracted overwhelming response from investors with bids of Rs 9,647 crore, and was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore. This is an indicator of the trust the investors place on the country’s largest Bank.
Based on the response, the Bank has decided to accept Rs 4,000 crore at a coupon rate of 7.57 per cent payable annually for a tenor of 15 years with a call option after 10 years and on anniversary dates thereafter. This represents spread of 14 bps over 10 year Gsec. The 10 year SDL cut off was at 7.69% annualized on September 20, 2022. The Bank has AAA (stable) credit rating from domestic credit rating agencies for these instruments.
SBI 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.
Company Name | CMP |
---|---|
SBI | 801.40 |
Bank Of Baroda | 268.15 |
PNB | 136.45 |
Canara Bank | 617.55 |
Union Bank Of India | 150.85 |
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