SBI bond issue.

 

State Bank of India will raise up to Rs. 10 billion by selling lower tier-II retail bonds maturing in 10 and 15 years, an official of SBI Capital Markets Ltd told TickerNews Service on Friday.

SBI has reserved 50% of the bonds for retail investors, 25% for high networth individuals and 25% for qualified institutional buyers.

The state-owned bank is offering annual coupon of 9.25% on the 10-year retail bonds that have a call option at the end of fifth year, the official said.

The 15-year retail bonds having a call option at the end of 10th year, carry an annual coupon of 9.50%.
The official said the coupon on retail bonds would be raised by 50 basis points if the call option is not exercised.