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The State Bank of India (SBI), said it has raised ₹3,717 crore through its third Basel III compliant Additional Tier 1 bond issuance in the current financial year at a coupon rate of 8.25%.
The proceeds will be utilised for augmenting Additional Tier 1 Capital and the overall capital base of the bank and strengthening capital adequacy in accordance with RBI guidelines.
The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter.
“The issue attracted an overwhelming response from investors with bids of ₹4,537 crore and was oversubscribed by about 2.27 times against the base issue of ₹2,000 crore. The total number of bids was 53 indicating wider participation. The investors were across provident and pension funds and insurance companies,” SBI said in a statement.
Based on the response, the bank has decided to accept ₹3,717 crore at a coupon rate of 8.25% payable annually. This represents the spread of 66 bps over the corresponding FBIL G-Sec par curve on March 8, 2023.
