SBI raises Rs 2,500 crore

By: | Published: September 28, 2016 6:31 AM

State Bank of India on Tuesday said it has issued and allotted 25,000 AT 1 Basel III compliant non-convertible debentures (NCDs) of face value R10,00,000 each at par through private placement bearing coupon of 8.75% ...

State Bank of India on Tuesday said it has issued and allotted 25,000 AT 1 Basel III compliant non-convertible debentures (NCDs) of face value R10,00,000 each at par through private placement bearing coupon of 8.75% aggregating to R2,500 crore in second tranche.

In a regulatory filing, India’s largest bank said that the bank “on September 27, 2016 has issued and allotted 25,000 AT1 Basel III compliant Non- convertible, Perpetual, Subordinated, Unsecured Debt instrument in the nature of debenture, of face value R10,00,000/- each at par through private placement bearing coupon @ 8.75% p.a. payable annually with call option after 5 years or any coupon payment date thereafter aggregating to R2,500 crore (Rupees two thousand five hundred crore) in second tranche.”

SBI recently raised $300 million through the first foreign currency AT1 issuance ever by an Indian bank.

The bank had said in a statement that the perpetual non-call 5 year deal was priced at a fixed coupon of 5.50% payable semi-annually and the first reset of the bond will be on the 6th anniversary date.

However, the bank was expected to raise at least $500 million. The securities were issued under SBI’s $10 billion Medium Term Note (MTN) program, via the bank’s Dubai International Financial Centre Branch.

The terms and conditions of the capital securities incorporate Basel III-compliant non-viability language in accordance with Reserve Bank of India (RBI) guidelines, and will qualify as regulatory Additional Tier 1 (AT1) capital securities.

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