State Bank of India (SBI), said it raised ₹7,500 crore on Wednesday at a coupon rate of 7.33% through its second 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 an overwhelming response from investors with bids in excess of 3 times against the base issue size of ₹4,000 crore,” SBI said in a statement.

“The total number of bids received was 77 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds and banks,” it said adding based on the response, the bank decided to accept ₹7,500 crore.

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