India New Issue-State Bank of India sets coupon on Tier II bonds - traders

MUMBAI, Sept 21 (Reuters) - State Bank of India SBI.NS has set the coupon for its Basel III-compliant Tier II bonds maturing in 15 years at 7.57%, three merchant bankers said on Wednesday.

The nation's largest lender had invited coupon and commitment bids from bankers and investors earlier in the day, and has accepted bids worth 40 billion rupees ($500.44 million), they said.

The bonds are rated AAA by CRISIL and ICRA, and the issue will have a call option at end of 10 years.

The issue will close for subscription later this week.

Earlier this month, SBI raised 68.72 billion rupees through the sale of Basel III-compliant additional Tier-I perpetual bonds at an annual coupon of 7.75%. This issue has a call option at end of five years.

($1 = 79.9300 Indian rupees)

(Reporting by Dharamraj Lalit Dhutia; editing by Uttaresh.V)

((Dharamrajlalit.dhutia@tr.com))

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