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However, of this, the State Bank of India (SBI) will go approximately ₹50 billion in Basel III compliant additional Tier-I perpetual bonds by the end of February. The issuance could involve a call option which is optional to exercise at the expiration of either 5 or 10 years. The call option and the timing are still being gauged by SBI on investor interest to make final decisions. It is expected that insurance companies will be among bidders. This is the first such bond issuance for any lender in a span of more than three months, with SBI being the last one to issue via this method in October when it raised ₹50 billion bonds with the coupon rate of 7.98% and the call option of 10 years. Along with mutual fund participation on continual bonds, recent regulatory change has also attracted more interest.
