The executive committee of State Bank of India’s (SBI) central board on Tuesday approved raising $2 billion of long-term funds through a public offer or private placement of senior unsecured notes or bonds in US dollar or any other convertible currency during FY24, the bank informed the exchanges.
“The executive committee of the central board in its meeting on April 18, 2023 has approved, inter alia, the following: “To examine the status and decide on long-term fundraising in single/multiple tranches up to US$ 2 billion…through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2023-24,” the exchange filing said.
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This comes on the heels of the bank raising Rs 3,717 crore of additional tier-1 bonds (AT-1) at coupon rate of 8.25% in March. The proceeds of the bonds will be utilised in augmenting AT-1 capital and the overall capital base, it said, adding that the tenure of these bonds is perpetual with a call option after 10 years and every anniversary thereafter.
Prior to the AT-1 bond issuance, SBI had in February secured $1 billion through its first-ever syndicated social loan from foreign banks.
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The issue had a base size of $500 million and the greenshoe option of another $500 million. The loan book was closed on February 24, according to an exchange filing.
SBI’s total capital adequacy ratio stood at 13.27% as on December end, with common-equity tier-I ratio at 9.26%, tier-II capital at 2.47% and AT-1 ratio at 1.54%.
The bank’s shares ended 0.3% higher at Rs 545.80 on the BSE on Tuesday.