Mumbai, Sep 1 (IANS): Lending major State Bank of India has raised Rs 4,000 crore through the 'Basel compliant Additional Tier 1' (AT1) bonds, on Wednesday at a coupon rate of 7.72 per cent.

This is the first AT1 Bond issuance in the domestic market post the new SEBI regulations. The regulations have come after regulator created a storm putting restrictions on MF investment in such bonds which are most popular among banks to raise funds.

"The issue garnered overwhelming response from investors with bids in excess of Rs 10,000 crore received against a base issue size of Rs 1,000 crore which is an indicator of the trust the investors place on the country's largest bank," the SBI said.

"This also very clearly demonstrates the maturity of the Indian investors in their selection of Issuers for such instruments.

"This is the lowest pricing ever offered on such debt, issued by any Indian bank since the implementation of 'Basel III' capital rules in 2013."

"The AT 1 instrument is perpetual in nature, however, it can be called back by the issuer after five years or any anniversary date thereafter."