State Bank of India (SBI) has raised Rs 3,717 crore through the issuance of additional tier-1 bonds at a coupon rate of 8.25%.

The bonds have a ten-year call option.

The proceeds of the bonds will be utilised in augmenting additional tier-1 capital and overall capital base of the bank and in strengthening capital adequacy.

SBI said that the issue attracted overwhelming response from investors with bids of Rs 4,537 crore and was oversubscribed 2.27 times against the base issue of Rs 2,000 crore. The total number of bids were 53. The investors were across provident and pension funds and insurance companies.

“Based on the response, the bank has decided to accept Rs 3,717 crore at a coupon rate of 8.25% payable annually. This represents a spread of 66 basis points over the corresponding FBIL G-Sec par curve on 8th March 2023,” the lender said in a statement.

SBI had originally planned a total fund-raising plan of Rs 5,456 crore through AT-1 bonds this week, including a base size of Rs 2,000 crore and a greenshoe option of Rs 3,456 crore.

Earlier on 21 February, SBI had raised additional tier-1 bonds of Rs 4,544 crore at a spread of 71 bps over the corresponding FBIL G-Sec par curve on the date of bidding. The coupon rate was at 8.20%.