State Bank of India (SBI) has raised Rs 4,691 crore through its first Basel III compliant Additional Tier 1 bond issuance for the current financial year. The bonds carry a coupon rate of 7.75% per annum and have perpetual tenure with call option after 5 years and each anniversary date thereafter. The bonds are rated AA+ with stable outlook from CRISIL Ratings and CARE Ratings.
This issue attracted a robust response from investors with bids of more than 2 times against the base issue size of Rs 3,000 crore. The investors were across provident funds, pension funds, mutual funds, banks etc. Based on the response, the bank has decided to accept Rs 4,691 crore at a coupon rate of 7.75% payable annually. This issuance is also significant as the bank has been able to diversify and raise long term non-equity regulatory capital.
State Bank of India is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.
