EBP witnesses two times oversubscription of SBI Tier II Bonds for INR 2000cr

Mumbai, November 2, 2018: National Stock Exchange of India Limited (NSE), India’s leading stock exchange, through its Electronic Bidding Platform,  NSE- EBP, facilitated the INR 2000 crores debt raising program for India’s leading bank, the State Bank of India. This Debt program will help meet SBI’s entire Tier II capital requirement for the current financial year.

EBP witnesses two times oversubscription of SBI Tier II Bonds for INR 2000cr

The capital raise was of the nature of Non-Convertible, Taxable, Redeemable, Subordinated Bonds, which are Basel III compliant. The Bonds are Unsecured Debt instrument issued in the form of debentures. The issue size of these Tier II Bonds was INR 2000 crore, with Green Shoe option to retain over subscription. The issue was oversubscribed over two times of the issue size and is the largest single tranche successful issue in current financial year with accepted subscription of more than 4,000 crore for a 10-year tenure on Electronic Bidding Platform.

Mr Vikram Limaye, MD and CEO, NSE, congratulated  SBI for successfully raising Additional Tier 2 Bonds on the NSE EBP Platform at a very competitive pricing and achieving oversubscription of around two times.

“It is encouraging to see such widened investor participation that led to an efficient price discovery for the Bank. NSE EBP has been the preferred choice of marquee issuers for their private placements and we thank SBI for partnering with us,” Mr Limaye said.

Mr Prashant Kumar, DMD and CFO, SBI, said “Investors have reposed their faith in SBI by oversubscribing the issue by two times. NSE-EBP has broadened our access to the wider pool of investors and this digital initiative will surely lead to creation of vibrant primary debt markets in India.”

The Bonds are priced at par with face value of INR 10 Lakhs per bond and redeemable after 10 years from the deemed date of allotment, with an exercisable call option after five years.

The Electronic Bidding Platform (EBP) is an initiative by SEBI mandated for private placement of debt issues by corporates. This Platform has been utilized by Banks, NBFCs, Housing Finance companies and other corporates to raise debt funding. The platform helps widen the issuer access to investors including Pension Funds, Provident Funds, Insurance Companies, Mutual Funds, Banks and other QIBs and non QIBs.

NSE is the preferred choice amongst leading blue chipped companies, banks, NBFCs and state owned companies. NSE-EBP is the most versatile platform with bespoke parameters offering best in class functionalities including reporting and in-principle approvals which offers the issuer with multiple bidding parameters to opt for bidding based on prevailing market environment. Majority of the PSU issuers are active on the NSE-EBP portal because of its flexibility and feature richness.


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