Home / News / India /  SBI raises 4,000 cr via Tier 2 bonds at coupon rate of 7.57%
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Country's largest public sector lender State Bank of India on 21 September said that it has raised 4,000 crore Basel III compliant Tier 2 bonds at a coupon rate of 7.57 per cent.

The public lender also said that the tier 2 bonds attracted overwhelming response from investors with bids of 9,647 crores and was oversubscribed by about 5 times against the base issue size of 2,000 crores.

Following the response, the SBI has now decided to accept 4,000 crore at a coupon rate of 7.57 per cent payable annually for a tenor of 15 years.

ALSO READ: SBI share price target, earnings estimates raised by Jefferies

"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," it said in a stock filing report.

Further more, the SBI said that this issuance represents spread of 14 bps over 10 year Gsec. The 10 year SDL cut off was at 7.69% annualized on September 20, 2022, it said.

On Wednesday, the stock of SBI closed at 569.80 , with a decline on 4.30 or 0.75 per cent. 

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