State Bank of India to issue $226mln bonds

15 year upper Tier II can be sold 9% and 10-year lower Tier II 8.75%.

State Bank of India to launch a 10 billion rupee ($226 million) bond issue for retail investors in the week of Oct. 13, sources with direct knowledge told Reuters on Monday.
"It could be issued on Oct. 13 or 14," one source said.

There will be two sets of bonds-- a 15 year upper Tier II bond and a 10-year lower Tier II bond, the sources said. "The 15-year will have a call option in 10th year and the 10-year has a put option in 5th year," said one source.

The call option will enable the bank to repay the bonds in the 10th year, while the put option will allow the investor to redeem the bonds in the 5th year.

View the full story in Reuters.