State Bank of India, the country's largest lender, is expected to launch the first tranche of its 100 billion rupees ($2.2 billion) retail bond issue on Monday, according to a term sheet obtained by Reuters and a source with direct knowledge of the matter.

The first tranche, in which the bank is raising up to 20 billion rupees, would close on Feb. 28, according to the term sheet.

The bank will offer 10-year bonds for retail investors at 9.75 percent and for non retail applicants at 9.3 percent. The bonds will carry a call option in the fifth year.

It will also sell 15-year bonds at 9.95 percent to retail investors and at 9.45 percent to non-retail investors. The bonds will have a call option in the tenth year

India State Bank of India India Retail