NewsStock Analysis, IPO, Mutual Funds, Bonds & MoreThe issue will bear coupon rate of 8.50 per cent with call option after 5 years or any anniversary date thereafter.PTI|Nov 22, 2019, 09.37 PM ISTReutersAT-1 bonds qualify as core or equity capital.New Delhi: State Bank of India (SBI) on Friday said it has raised Rs 3,813.60 crore through perpetual bonds to fund its business growth.
The Committee of Directors for Capital Raising today accorded approval for allotment of 38,136 non-convertible, taxable, subordinated, unsecured Basel III compliant AT1 bonds in the nature of debentures of face value of Rs 10 lakh each, SBI said in a regulatory filing.
It will bear coupon rate of 8.50 per cent with call option after 5 years or any anniversary date thereafter, aggregating to Rs 3,813.60 crore to the bond subscribers, it added.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the Reserve Bank of India.
AT-1 bonds qualify as core or equity capital.
Also ReadAirtel raises $750 million via perpetual bondsSBI raises Rs 3,800 crore via perpetual bond saleHigher yields keep demand strong for perpetual bondsPerpetual bonds are offering higher interest rates than fixed deposits: Should you invest?What are perpetual bonds?Commenting feature is disabled in your country/region.Browse CompaniesABCDEFGHIJKLMNOPQRSTUVWXYZ|123456789Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
Source