SBI raises Rs 4\,000 crore in additional tier 1 bonds

Kolkata: Country’s largest lender State Bank of India raised Rs 4,000 crore in additional tier 1 bonds at a coupon of 7.74%, the bank said in a regulatory filing.

Another public sector lender Canara Bank raised Rs 1012 crore using similar instrument at 8.30%, according to market sources.

"This is the lowest pricing ever offered on such debt, issued by any bank since the country started implementing the stringent Basel III capital rules in 2013," SBI said later in a statement issued to the media.

It received bids worth Rs 6,000 crore and exercised the greenshoe option of Rs 3,000 crore over and above the base issue size of Rs 1,000 crore.

This fund raising by SBI comes close on the heels of its tier 2 fund raising of Rs 8,931 crore at 6.80% happened last month.