SBI raises Rs 4,691 crore via Tier 1 bonds at 7.75% coupon
As oil prices surged, treasury yields took notice, raising inflation worries in the market. Traders are keeping a watchful eye on the Federal Reserve’s expected decision to maintain interest rates today. Nonetheless, traders are fully anticipating a hike in September, with a solid possibility of another increase before the year’s end.
SBI chairman C S Setty, said that the bond attracted a wide participation of investors with did kinds bids demonstrating the trust investors place in the country’s largest bank.
“This issue attracted a robust response from investors with bids of more than 2 times against the base issue size of Rs 3,000 crores. The total number of bids received was 89 indicating participation from diverse set of qualified institutional bidders. The investors were across provident funds, pension funds, mutual funds, banks etc,” SBI said in a statement.
Based on the response, SBI accepted Rs 4,691 crore at a coupon rate of 7.75% payable annually.
The bonds are rated AA+ with stable outlook from Crisil and Care Ratings.
