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PSU lender SBI will raise ₹4,116 crore by issuing Basel III compliant bonds to add up to its tier 2 capital, the bank said Friday.
The committee of the directors for capital raising has accorded approval to allot Basel III compliant debt instruments qualifying as tier 2 capital of the bank, SBI said in a regulatory filing.
As per the bond programme, the bank will issue 41,159 non-convertible, taxable, redeemable, subordinated, unsecured debt instruments in the nature of debentures of face value of Rs 10 lakh each, bearing coupon of 8.90 per cent per annum aggregating to ₹4,115.90 crore, it said.
The interests are to be paid annually for a tenor of 10 years with call option after 5 years to various bond subscribers, SBI said.
Stock of SBI traded 0.61 per cent down at Rs 283.95 on BSE.
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