State Bank of India (SBI) successfully concluded its second Basel III Compliant Tier 2 bond issuance for the financial year, raising ₹6,051 crore. The bonds carry a coupon rate of 7.05%, a 10-year tenor, and include a call option after 5 years. The offering saw an excellent investor response, securing bids approximately two times the base issue size of ₹5,000 crore, demonstrating significant market trust.
SBI Completes Tier 2 Bond Issuance for FY
State Bank of India (SBI), India’s largest lender, announced the successful completion of its second Basel III Compliant Tier 2 (Series 2) bond issuance for the current financial year on March 17, 2026. The bank raised a total of ₹6,051 crores through this exercise.
Key Bond Terms and Ratings
The newly issued bonds feature a fixed coupon rate of 7.05%, payable annually. The tenure for these instruments is set at 10 years, incorporating a call option exercisable by the Bank after 5 years and on each subsequent anniversary date thereafter. The issuance has been assigned the highest rating of AAA with a stable outlook by both CRISIL Ratings Limited and India Ratings and Research Private Limited, affirming the bank’s strong credit profile.
Strong Investor Response
The issue generated substantial interest from the market, attracting bids worth approximately 2 times the base issue size of ₹5,000 crores. A total of 47 bids were received, indicating broad participation from a diverse pool of qualified institutional bidders, including provident funds, pension funds, mutual funds, and banks.
Leadership Commentary
Shri C S Setty, Chairman, noted that the wide participation and the heterogeneity of the bids received underscore the deep trust and confidence that investors place in the nation’s largest bank. Based on this overwhelming response, the Bank decided to accept the aggregated amount of ₹6,051 crores at the specified coupon rate.
Source: BSE
