India’s largest lender, State Bank of India (SBI), on 1 November announced that it had raised Rs 10,000 crore by issuing tier 2 bonds. The bank has successfully raised the amount at an interest rate of 7.81% and is issued for a period of 15 years, featuring the first call option after 10 years.

In its regulatory filing, the lender said, “The issuance garnered a robust response from investors, with bids amounting to Rs. 15,907 crores, oversubscribing it nearly 4 times over the base issue size of Rs. 4,000 crores, with 98 bids,”

The lender has accepted Rs 10,000 crore for a coupon rate of 7.81%, which is payable annually for a period of 15 years.

On 9 June, the company announced its plans to raise Rs 50,000 crore through debt instruments from both domestic and overseas markets during the current fiscal year. This issuance of Tier 2 bonds marks the first raise of capital in the ongoing financial year.

The board of the bank has approved the fundraising and allowed the issuance of debt instruments in INR or any other convertible currency up to an amount of Rs 50,000 crore through Long Term Bonds, Basel III-compliant Tier 2 Bonds, and Basel III-compliant Additional Tier 1 Bonds to Indian and/or Overseas investors during the current fiscal year.