State Bank of India (SBI), India’s largest bank, will launch the first tranche of its Rs 10,000-crore retail bond issue on Monday with an interest rate of 9.95% for 15-year bonds to retail investors.
“The issue will open for subscription on February 21, and will close on February 28,” said a senior official who did not wish to be named.
The bank will offer 10-year bonds for retail investors at 9.75% and for non-retail applicants at 9.30%. It will also offer interest of 9.45% on 15-year bonds to non-retail investors. In the first tranche, the bank will raise up to Rs 2,000 crore.
Earlier this month, SBI had filed a draft prospectus with the Securities and Exchange Board of India seeking the regulator’s nod for raising Rs 10,000 crore through bonds in one or more tranches. The funds raised from the bonds will constitute SBI’s lower Tier II capital, which include subordinated debt and convertible securities.