SBI issues compliant bonds to raise Rs 6,000 crore

State Bank of India has announced on Monday that it has raised Rs 6,000 crore by issuing Basel III compliant bonds. In June, the country’s largest lender had received approval from its central board for raising fresh additional tier 1 (AT 1) capital of up to Rs 14,000 crore.

SBI said in a regulatory filing that the committee of directors for capital raising at its meeting on October 18, 2021, accorded its approval to allot 6,000 Basel III compliant fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to bond subscribers.

The non-convertible, taxable, perpetual, subordinated, unsecured bonds of the face value of Rs 1 crore each aggregates to Rs 6,000 crore. The bonds bear a coupon of 7.72 per cent per annum payable annually, SBI said.

Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.

Shares of SBI closed at Rs 497.85 a piece on BSE, up 1.50 per cent from the previous close.