State Bank of India (SBI) said it had raised ₹7,500 crore on Wednesday at a coupon rate of 7.42% through its first Basel III compliant Tier 2 bond issuance for the current financial year. 

The bonds are issued for a tenor of 15 years, with call option after 10 years and each anniversary dates thereafter.

“The issue attracted overwhelming response from investors with bids in excess of ₹8,800 crore against the base issue size of ₹5,000 crore. The total number of bids received was 70 indicating wider participation with heterogeneity of bids. The investors were across provident funds, pension funds, mutual funds and banks,” SBI said in a statement. 

C S Setty, Chairman, SBI said the wider participation and heterogeneity of bids demonstrated the trust investors place in the bank.

Based on the response, the bank has decided to accept Rs. 7,500 crore at a coupon rate of 7.42% payable annually.