Key Points
- SBI raised ₹5,000 crore through AT-1 bonds.
- Interest rate is set at 7.98%.
- This is the first AT-1 bond issuance of the financial year.
- The bonds are permanent, with an option to call them back after 10 years.
- They are rated AA+ by CRISIL and CARE Ratings.
- Investors submitted bids that exceeded 3.5 times the base size.
- 108 bids were received from various institutional investors.
Looma News
State Bank of India (SBI) successfully raised ₹5,000 crore by issuing Additional Tier 1 (AT-1) bonds, in line with Basel III rules. These bonds have an interest rate of 7.98% and are the first AT-1 bonds issued this financial year.
The bonds are permanent, with the option to call them back after 10 years and on each anniversary thereafter. They have an AA+ rating with a stable outlook from CRISIL Ratings and CARE Ratings.
The issuance saw a lot of interest, with bids totaling more than 3.5 times the base amount of ₹2,000 crore. A total of 108 bids were received from qualified institutional bidders, including provident funds, pension funds, insurance companies, mutual funds, non-banking financial companies (NBFCs), and banks.
Challa Sreenivasulu Setty, Chairman of SBI, mentioned that the diverse participation and high number of bids show the trust investors have in India’s largest bank.
