SBI mulls to raise up to Rs 10,000 cr tier-II bond issue next week

State Bank of India (SBI) is likely to raise up to Rs 10,000 crore ($1.20 billion) through Basel III-compliant tier-II bonds maturing in 15 years, three merchant bankers said on Thursday.

The country's largest lender is likely to invite coupon and commitment bids for the issue next week, the bankers said.

The proposed bonds will also have a call option at the end of the tenth year, they added.

SBI did not immediately respond to Reuters' request for comment.

The bonds are rated AAA by consulting and rating firms CRISIL and India Ratings.

SBI last raised funds via tier-II bonds maturing in 15 years in September 2022. It had raised 40 billion rupees at a coupon of 7.57 per cent.

In September, it raised 100 billion rupees via infrastructure bonds maturing in 15 years at a coupon of 7.49 per cent.