Mumbai: Country’s largest lender State Bank of India (SBI) on Wednesday said it has raised Rs5,496.9 crore from retail bonds to fund its expansion plans.
The bank has accorded approval for issue and allotment of 7,31,078 Series 3 Lower Tier-II Bonds of face value Rs10,000 each and 47,65,918 Series 4 Lower Tier-II Bonds of face value Rs10,000 to the eligible applicants, in the first tranche, SBI said in a filing to the Bombay Stock Exchange (BSE).
Together 54,96,996 applicants received bonds worth Rs10,000 each and thus raised Rs5,496.9 crore, it said.
The issue, which had opened on 21 February, closed on 28 February. Investors were attracted to the issue because of its competitive coupon rate and the timing, as the end of the fiscal is usually when individuals do tax-saving investments.
This issue is part of the Rs10,000-crore retail bond programme SBI has planned for FY11 through FY12.
The bank had raised Rs1,000 crore through the retail bonds in the first tranche, issued in October, 2010, which was oversubscribed 19 times. That was the first retail bond offering in the country by any bank.
The bank is offering a 9.75% coupon rate to retail investors on the 10-year bond and 9.3% for non-retail applicants. These bonds carry a call option in the fifth year.
For the 15-year bond, the coupon rate is 9.95% for retail investors and 9.45% for non-retail investors. These bonds have a call option in the 10th year.