The country’s largest lender State Bank of India Wednesday said it has raised Rs 3,717 crore through Basel III compliant additional tier 1 (AT1) bonds.

The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter.

The bonds offered a coupon of 8.25 per cent, representing a spread of 66 basis points (bps) over the corresponding Financial Benchmarks India Pvt Ltd (FBIL) government security par curve on March 8, 2023, the bank said in a statement.

The proceeds of bonds will be utilized in augmenting additional tier 1 capital and the overall capital base of the bank.

Before this, SBI had raised additional tier 1 bonds of Rs 4,544 crore on February 21, 2023 at a spread of 71 bps over the corresponding FBIL G-Sec par curve on the date of bidding.

Of the total outstanding of the lender’s additional tier 1 bonds of Rs 49,842.70 crore, Basel III AT1 bonds with a call option of 5 years stands at Rs 41,581.70 crore and AT1 bonds with a call option of 10 years is at Rs 8,261 crore.



Please enter your comment!
Please enter your name here