SBI raises Rs 4,000 crore via tier-2 bonds at cutoff rate of 7.57%

Lender claims overwhelming response from investors, with bids of Rs 9,647 crore; issue oversubscribed 5x against base size of Rs 2,000 crore

The country’s largest lender, State Bank of India, announced on Wednesday that it has raised an amount of Rs 4,000 crore through tier-2 bonds at a cutoff rate of 7.57 per cent.

“The issue attracted an 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,” the bank said.

The bonds have a tenure of 15 years with a call option after 10 years, SBI said, adding that the instruments are rated AAA (stable) by credit rating firms.

The public sector bank had sold