Sunday, March 26, 2023

SBI raises Rs 3,717 crore from its 3rd AT1 bond sale – Usky News

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Mumbai: Country’s largest lender state Bank of India Raised Rs 3,717 crore through Additional Tier-1 (AT1) bond sale on Wednesday. bank said it’s the third Basel III-Compliant The AT1 bond sale and the latest issue closed at a coupon rate of 8.25%.
The proceeds will also be used to augment its AT1 capital and the bank’s overall capital base and strengthen capital adequacy. reserve Bank of India guidance.
These perpetual bonds have a call option after 10 years and every anniversary thereafter. Regarding investor interest, the bank said the issue has received an overwhelming response with bids of Rs 4,537 crore. It received 53 bids from provident and pension funds and insurance companies and was oversubscribed nearly 2.3 times against the base issue of Rs 2,000 crore.
In view of the high response, the bank has decided to accept Rs 3,717 crore at a coupon rate of 8.25% payable annually. This represents a spread of 66 basis points (100bps = 1 percentage point) above the respective g sec Equal curve on 8th March.


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