State Bank of India (SBI) reported on Wednesday that fresh Tier 1 bonds helped it raise Rs 3,717 crore. The largest bank in the nation has issued three such successful securities so far this fiscal year. According to SBI, the coupon rate for these bonds was 8.25 percent.

The proceeds from the issuance will be used to boost capital adequacy in compliance with Reserve Bank of India (RBI) rules, as well as to increase Additional Tier 1 Capital and the bank’s overall capital base. These bonds have a perpetual tenor with a call option after ten years and on each anniversary after that. The float, which received bids totaling Rs 4,537 crore and was oversubscribed by nearly 2.27 times compared to the base offer of Rs 2,000 crore, according to SBI, got a strong response from investors.

In addition, there were 53 bids in all, showing greater involvement, even though the investors included insurance firms, pension funds, and provident funds. With AT1bonds, it had raised Rs 4,544 crore in February.