State Bank of India (SBI) on Wednesday said that it has raised Rs 3,717 crore through additional Tier 1 bonds. This is the third such successful issuance by the country’s largest bank in this fiscal year.

SBI said that these bonds were issued at a coupon rate of 8.25 per cent.

The proceeds from the issue will be used to augment the Additional Tier 1 Capital and the overall capital base of the bank and strengthening capital adequacy in accordance with Reserve Bank of India (RBI) guidelines.

The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter. SBI added that the float attracted an overwhelming response from investors with bids of Rs 4,537 crore and was oversubscribed by about 2.27 times against the base issue of Rs 2,000 crore.

Further, the total number of bids was 53, indicating wider participation, even as the investors were across provident, pension funds and insurance companies. In February, it had raised Rs 4,544 crore through AT1bonds.

Similarly, in September last year it had mobilised Rs 6,872 crore. SBI said that for the latest issue, the coupon rate of 8.25per cent will be payable annually.

The bank had AA+ rating with a stable outlook creditrating from domestic creditrating agencies for these instruments.