State Bank Of India

State Bank of India (SBI) has raised Rs 4,000 crore through Basel compliant additional tier 1 (AT1) bonds, offering a coupon rate of 7.72 percent. The issue garnered an overwhelming response from investors with bids above Rs 10,000 crore received against a base issue size of Rs 1,000 crore. This is the lowest pricing ever offered on such debt, issued by any Indian bank since the implementation of Basel III capital rules in 2013.

While the bank has an AAA credit rating from local credit agencies, the AT1 offering is rated AA+, which is the highest rating in the country for these instruments because of the hybrid and high-risk nature of these instruments.

SBI 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.