SBI raises ₹4,691 cr through bonds from diversified qualified institutions
State Bank of India (SBI) has successfully raised ₹4,691 crore through its first Basel III compliant Additional Tier 1 (AT1) bonds of the current financial year. The issuance saw strong demand from diverse institutional investors, reflecting confidence in the bank's financial stability.
Why it matters
The successful capital raise demonstrates the bank's ability to meet global regulatory capital adequacy norms while diversifying its funding sources.
State Bank of India (SBI), the country’s largest lender, has raised ₹4,691 crore through its first Basel III compliant Additional Tier 1 (AT1) bonds to part fund the growth strategy, signifying its ability to diversify and raise long term non-equity regulatory capital,.
This is the first Tier I bonds issuance in the ongoing financial year and the paper carries a coupon rate of 7.75%. The tenor of these bonds is perpetual with call option after five years and each anniversary date thereafter and are rated AA+ with “stable” outlook from CRISIL Ratings Ltd and CARE Ratings Ltd.
“This issue attracted a robust response from investors with bids of more than two times against the base issue size of ₹ 3,000 crores,” SBI said in a statement.
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