SBI raises Rs 3,700 cr via AT-1 bonds
Mumbai: The country’s largest lender SBI has raised Rs 3,717 crores by issuing Additional Tier 1 (AT-1) bonds at a coupon rate of 8.25%.
The bonds have a perpetual tenor and a call option after 10 years, as well as annually thereafter.
In a press release, SBI announced that the offering received bids of Rs 4,537 crores, making it oversubscribed by about 2.27 times in comparison to the base issue of Rs 2,000 crores.
AT-1 bonds are a type of perpetual debt instrument that banks use to enhance their core equity base and meet Basel III regulations. These bonds were established as a result of the Basel accord after the worldwide financial crisis to safeguard depositors.
“We believe that this issuance may help in developing a long-term AT-1 bond curve and encourage banks to effectively manage their AT-1 capital,” the bank said in a release.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
India-Bhutan ₹4,033 cr rail project approved: 89 km railway lines to be laid for cross-border connectivity
WHO reports 42,000 people have life-changing injuries in Gaza
Taliban Foreign Minister Amir Khan Muttaqi to visit India for first high-level talks since 2021
India's INS Sutlej arrives in Mauritius to undertake 18th Joint Hydrographic Survey
