Transaction Details
State Bank of India raised ₹4,691 crore through its first Basel III compliant Additional Tier 1 bond issuance for the current financial year. The bonds carry a coupon rate of 7.75% payable annually.
Bond Characteristics
- Tenor: Perpetual with call option after 5 years and each anniversary date thereafter
- Ratings: AA+ with stable outlook from CRISIL Ratings Limited and CARE Ratings Limited
Investor Response
The issue attracted robust investor response with:
- Bids of more than 2 times against the base issue size of ₹3,000 crores
- Total number of bids received: 89
- Participation from diverse set of qualified institutional bidders
- Investor categories included provident funds, pension funds, mutual funds, and banks
Management Commentary
Shri C S Setty, Chairman, stated that the wider participation and heterogeneity of bids demonstrated the trust investors place in the country's largest Bank.
Strategic Significance
The Bank has been able to diversify and raise long term non-equity regulatory capital through this issuance.