The country’s largest lender raised Rs. 5,000 crores through its first Basel III compliant Additional Tier 1 bond issuance today for the current financial year at a coupon rate of 7.98%
FinTech BizNews Service
Mumbai, 23 October, 2024: State Bank of India (SBI), the country’s largest lender, raised Rs. 5,000 crores through its first Basel III compliant Additional Tier 1 bond issuance today for the current financial year at a coupon rate of 7.98%. The tenor of these bonds is perpetual with call option after 10 years and each anniversary date thereafter and are rated AA+ with stable outlook from CRISIL Ratings Limited and CARE Ratings Limited.
The issue attracted an overwhelming response from investors with bids in excess of 3.5 times against the base issue size of Rs. 2,000 crores. The total number of bids received was 108 indicating participation from diverse set of qualified institutional bidders. The participants were across provident funds, pension funds, insurance companies, mutual funds, NBFCs, banks etc.
Shri C S Setty, Chairman said that wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank.
Based on the response, the Bank has decided to accept Rs. 5,000 crores at a coupon rate of 7.98% payable annually. The issuance is also significant as the Bank has been able to diversify and raise long-term non-equity regulatory capital
