State Bank of India (SBI) raised ₹5,000 crore through Basel III compliant Additional Tier 1 (AT-1) bond issuance on Wednesday at a coupon rate of 7.98 per cent. This is the bank’s first AT-1 bond issuance in the current financial year.
The tenor of these bonds is perpetual with call option after 10 years and each anniversary date thereafter, India’s largest bank said in a statement. The bonds are rated AA+ with a stable outlook from CRISIL Ratings and CARE Ratings.
The issue attracted bids from investors in excess of 3.5 times the base issue size of ₹2,000 crore, the bank said, adding that the total number of bids received from qualified institutional bidders was 108.
The participants were from provident funds, pension funds, insurance companies, mutual funds, NBFCs, banks, etc.
Challa Sreenivasulu Setty, Chairman, said the wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest bank.