SBI Secures Rs 5,000 Crore Through AT-I Bonds Offering 7.98% Interest.

Banking & Finance

Mumbai (Maharashtra)-based State Bank of India (SBI) has raised Rs 5,000 crore through its first Basel III compliant Additional Tier 1 (AT-1) bond issuance for the current financial year (FY2025), offering a coupon rate of 7.98%.


      - The tenor of these SBI's AT-1 bonds is perpetual, with a call option after 10 years and each anniversary date thereafter.

      - The issue attracted bids over 3.5 times the base issue size of Rs 2,000 crore. A total of 108 bids were received, reflecting participation from a diverse group of qualified institutional bidders.

     

Main Points:-   (i) The participants included provident funds, pension funds, insurance companies, mutual funds, Non-Banking Financial Companies (NBFCs), and banks.

      (ii) The bonds are rated AA+ with a stable outlook by CRISIL (Credit Rating Information Services of India Limited) and CARE (Credit Analysis and Research Limited) Ratings.

(iii) AT-1 bonds are debt instruments issued by banks to raise funds and strengthen their capital base.
About SBI

Chairman: Challa Sreenivasulu Setty
Headquarter : Mumbai
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