State Bank of India Plans to Raise Rs 5000 Crore Through AT-I Bonds
The State Bank of India is raising Rs 5,000 crore this week through the issuance of AT-I bonds, with a focus on enhancing its core equity capital. The bonds have received favorable ratings and include a significant green shoe option.
State Bank of India Plans to Raise Rs 5000 Crore Through AT-I Bonds
The State Bank of India (SBI) is set to raise Rs 5,000 crore this week through the issuance of non-convertible, perpetual, subordinated, unsecured Basel III compliant additional tier I (AT-I) bonds. The base issue size is Rs 2,000 crore, with an additional green shoe option of Rs 3,000 crore. These bonds have received AA+ ratings from both CRISIL and CARE.
The AT-I bonds come with a call option available on October 24, 2034, marking ten years since their issuance. SBI aims to utilize these funds to replace existing bonds and strengthen its core equity capital. In September, the bank successfully raised Rs 7,500 crore through tier-II bonds.
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