Mumbai (Maharashtra) [India], Sep 1 (ANI): State Bank of India (SBI) said on Wednesday it has raised Rs 4,000 crore of Basel compliant additional tier 1 (AT1) bonds at coupon rate of 7.72 per cent.
This is the first AT1 bond issuance in domestic market post new SEBI regulations.
SBI said the issue garnered overwhelming response from investors with bids in excess of Rs 10,000 crore received against a base issue size of Rs 1,000 crore, which is an indicator of the trust investors place on the country's largest bank.
"This also very clearly demonstrates the maturity of Indian investors in their selection of issuers for such instruments."
Based on the response, SBI has decided to accept Rs 4,000 crore at a coupon of 7.72 per cent. This is the lowest pricing ever offered on such debt issued by any Indian bank since the implementation of Basel III capital rules in 2013.
The AT1 instrument is perpetual in nature. However, it can be called back by the issuer after five years or any anniversary date thereafter.
While SBI has AAA credit rating from local credit agencies, the AT1 offering is rated AA-plus which is the highest rating in the country for these instruments in view of hybrid and high-risk nature of these instruments. (ANI)