Back to Career News

SBI raises ₹3,717cr via bond issuance

March 09, 2023

SBI raises ₹3,717cr via bond issuance
The nation’s largest lender State Bank of India on Wednesday raised ₹3,717 crore through additional tier 1 bond sale.

The bank said this is the third Basel III compliant additional tier 1 (AT1) bond sale and the latest issue was closed at a coupon rate of 8.25 per cent.

The proceeds will be used to augment its additional tier 1 capital and overall capital base of the bank and also for strengthening capital adequacy in accordance with RBI guidelines.

These perpetual bonds have a call option after 10 years and every anniversary thereafter.

On the investor interest, the bank said the issue attracted an overwhelming response from investors with bids of ₹4,537 crore from 53 bids from provident and pension funds and insurance companies and was oversubscribed by about 2.27 times against the base issue of ₹2,000 crore.

Given the high response, the bank has decided to accept ₹3,717 crore at a coupon rate of 8.25 per cent payable annually. This represents spread of 66 bps over the corresponding G-Sec par curve on March 8.

Prior to this bond sale the bank had raised ₹4,544 crore on February 21, 2023, from similar bonds at a spread of 71 bps over the corresponding G-Sec par curve on the date of bidding.

Important Links:
Tags:
Bondfundssbi

Recommended for you ...

Nirmala Sitharaman Continues as Finance Minister in Modi's Third Term
Nirmala Sitharaman Continues as Finance Minister in Modi's Third Term

June 11, 2024

BFSI Industry Shares Expectations from New Government
BFSI Industry Shares Expectations from New Government

June 11, 2024

RBI Keeps Repo Rate Unchanged for Eighth Time in a Row
RBI Keeps Repo Rate Unchanged for Eighth Time in a Row

June 11, 2024

Chat on WhatsApp