India New Issue-SBI sets 7.81% coupon on tier-II bonds - bankers

Mahanagar Telephone Nigam

01/11/2023 06:47

MUMBAI, Nov 1 (Reuters) - State Bank of India  SBI.NS  has set a coupon of 7.81% on
Basel III-compliant tier-II bonds maturing in 15 years, three merchant bankers said on
Wednesday.
    The country's largest lender has also accepted bids worth 100 billion rupees ($1.20 billion)
for this issue. It had invited bids for the issue earlier in the day. 
    The bonds have a call option at the end of the tenth year.
    SBI last raised funds via tier-II bonds maturing in 15 years in September 2022. It had
raised 40 billion rupees at a coupon of 7.57%. 
    In September 2023, it raised 100 billion rupees via infrastructure bonds maturing in 15
years at a coupon of 7.49%.
 
 Here is the list of deals reported so far on Nov. 1
                                                                      
   Issuer   Tenure        Coupon (in %)  Issue size (in  Bidding      Rating
                                         bln rupees)*    date         
                                                                      
 SBI        15-year       7.81           100             Nov. 1       AAA (Crisil,
                                                                      India Ratings)
 MTNL              10-yr  To be decided           31.26  Nov. 6       AAA (CE) (India
                                                                      Ratings, Care)
 
*Size includes base plus greenshoe for some issues




($1 = 83.2775 Indian rupees)

 (Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by Sonia Cheema)
 ((Bhakti.Tambe@thomsonreuters.com))