New Delhi, March 17 State Bank of India (SBI) announced on Tuesday that it has raised ₹6,051 crore through its second Basel III-compliant Tier 2 bond issuance at a coupon rate of 7.05 per cent.
The funds raised will be used for the bank's business growth.
The bonds have a tenor of 10 years, with a call option after 5 years and each subsequent anniversary date, SBI said in a statement.
The issue attracted a good response from investors, with bids approximately 2 times the base issue size of ₹5,000 crore, it added.
A total of 47 bids were received, indicating participation from a diverse group of qualified institutional bidders, it said, adding that the investors included provident funds, pension funds, mutual funds, banks, etc.
SBI Chairman CS Setty said that the wide participation and diversity of bids demonstrate the trust investors have in the country's largest bank.
Based on the response, the bank has decided to accept ₹6,051 crore at a coupon rate of 7.05 per cent payable annually, it added.