SBM Bank India raises ₹125 crore via maiden Tier-II bonds

Our Bureau Updated - April 19, 2022 at 06:03 PM.
Sidharth Rath, Managing Director and CEO, SBM Bank India

SBM Bank India, a wholly-owned subsidiary (WoS) of Mauritius-based SBM Group, has raised ₹125 crore at a coupon rate of 9.75 per cent via its maiden Tier‐ II capital Basel‐III compliant bonds with a 10‐year maturity to propel its expansion plans.

Further, the bank has also raised ₹300 crore from the National Bank for Agriculture and Rural Development (NABARD) under automatic refinance facility.

The bonds carry a call option at the end of the 5th year. This issuance comes after SBM Bank completed its third full year of operations as a full‐service Indian bank, post commencement of business as a WoS of SBM Group Holdings, per a statement.

“The automatic refinance facility was provided considering the existing portfolio of indirect finance to microfinance borrowers in rural areas, which fulfill the objective of NABARD of sustained access to financial services for the unreached poor in rural areas through various microfinance innovations cost‐effectively and sustainably,” SBM Bank said.

Sidharth Rath, Managing Director and CEO, SBM Bank India, said, “The bank has registered robust growth in the first three years of operations with highly efficient capital usage.

“We at SBM Bank India are now scaling up our vision and operations to transform the banking experience through technology, product proposition and talent,“ he added.

Published on April 19, 2022 12:33

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