SBI’s Basel III compliant Additional Tier 1 Bond Issuance
Mumbai: Public sector lender State Bank of India (SBI) raised Rs 5,000 crore on Thursday through its second Basel III compliant Additional Tier 1 bond issuance for the current financial year at a coupon rate of 8.34 percent.
The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter, according to a statement.
The issue attracted an overwhelming response from a wide range of investors with 108 bids of Rs. 5,294 crores and was oversubscribed by about 2.65 times against the base issue size of Rs 2,000 crores.
The investors were across mutual funds, provident & pension funds, banks, insurance companies, etc.
Dinesh Khara, Chairman SBI, stated, “The tight pricing and the diverse investor base for an instrument which has its own challenges shows the trust investors place in the Bank.”
Based on the response, the bank has decided to accept bids of Rs. 5,000 crores at a coupon rate of 8.34% payable annually.
The Bonds were rated AA+ with a stable outlook by CRISIL and ICRA.
The issuance is significant as the Bank has been able to diversify and raise long-term non-equity regulatory capital.
(With UNI inputs)
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
TVK leader booked for social media post urging ‘Gen Z revolution’ after Karur tragedy
PoK protests: Agitation escalates as civilians toss containers into river, clash with Pakistani forces
Nine Assam workers killed in accident at Tamil Nadu power plant site, PM Modi announces compensation
Denmark to tighten student visa rules, restrict family entry for Bangladeshi and Nepali applicants
