- January 19, 2024
SBI Successfully Raises INR 5,000 Crores via Second Basel III Compliant Bond Issuance

SBI Successfully Raises INR 5,000 Crores via Second Basel III Compliant Bond Issuance
In a major financial move, the State Bank of India (SBI), the country’s largest lender, has successfully raised INR 5,000 crores through its second Basel III compliant Additional Tier 1 bond issuance for the current financial year. The bond, with a perpetual tenor and a call option after 10 years and every anniversary thereafter, carries a competitive coupon rate of 8.34%.
The response to the issuance has been overwhelming, attracting 108 bids totaling INR 5,294 crores. This substantial oversubscription, approximately 2.65 times the base issue size of INR 2,000 crores, reflects the strong interest from a diverse group of investors, including mutual funds, provident and pension funds, banks, and insurance companies.
Chairman of SBI, Shri Dinesh Khara, expressed satisfaction with the robust investor response, highlighting the trust placed in the bank despite the inherent challenges associated with such financial instruments. The Bank has decided to accept bids of INR 5,000 crores at the competitive coupon rate of 8.34%, payable annually.
CRISIL and ICRA have rated the bonds AA+ with a stable outlook, underlining the creditworthiness of the issuance. This move is significant for SBI as it marks a successful effort to diversify and raise long-term non-equity regulatory capital.
Key Points:
- SBI raises INR 5,000 crores through its second Basel III compliant Additional Tier 1 bond issuance.
- Perpetual bonds with a call option after 10 years and every anniversary thereafter.
- Competitive coupon rate of 8.34%.
- Oversubscribed by about 2.65 times, with 108 bids totaling INR 5,294 crores.
- Diverse investor base including mutual funds, provident and pension funds, banks, and insurance companies.
- Bonds rated AA+ with a stable outlook by CRISIL and ICRA.
- Signifies SBI’s successful diversification and raising of long-term non-equity regulatory capital.