SBI eyes ₹7,500 cr via tier-II bond issue

State Bank of India (SBI), the country’s largest lender, is set to issue what could be the first domestic bank bond of the current financial year.

- Subhana Shaikh

The bonds will carry a five-year call option.

(MIN)

Two people familiar with the matter told Mint that the bank plans to tap the debt market this week with 10-year tier-II bonds.

The bank aims to raise up to ₹7,500 crore through the offering, which has a base issue of ₹5,000 crore and a green-shoe option of ₹2,500 crore. The bonds will carry a five-year call option, one of the persons said. “The bond issue is likely to come this week, with bidding expected on Friday.”

The proceeds would likely be used to meet regulatory requirements and support business growth, the people said.

SBI Capital Markets Ltd is arranging the issue.

‘An emailed query to SBI went unanswered at press time.