SBI raises 750 mn euros from bond issue

State Bank of India (SBI) today said it has successfully raised 750 million euros (about Rs 4,570 crore) worth of debt through the issuance of bonds under its Medium-Term Note programme.

The 5-year bonds have a coupon rate of 4.5 per cent, payable annually, SBI informed the Bombay Stock Exchange.

The bonds will be issued by SBI's London branch on November 30 and will be listed on the Singapore Exchange, it said.

Shares of SBI closed at Rs 2,952.60 today, down 2.8 per cent on the Bombay Stock Exchange.

Last month, SBI raised Rs 1,000 crore from a retail bond auction. The first retail bond issue was subscribed over 17 times on the opening day itself. The bank had to curtail the subscription period as the response was beyond expectations.

The offer comprised the issue of bonds worth Rs 500 crore, with the option of raising another Rs 500 crore through the issue of additional bonds.

The bonds issued in two variants -- Series 1 and Series 2 -- have a maturity period of 10 years and 15 years, respectively, and a face value of Rs 10,000 each. The 10-year bonds offer a 9.25 per cent interest rate, while the 15-year papers attract a 9.5 per cent interest rate.

The bonds are listed on the National Stock Exchange (NSE). The proceeds will be utilised to augment the bank's capital base, in line with its growth strategy.