State Bank of India (SBI) on Wednesday raised Rs 4,691 crore via an additional tier‑1 (AT1) bond issue at a cut‑off yield of 7.75%. This is the first AT1 bond issuance by a bank in the current financial year.
The tenure of these bonds is perpetual with a call option after five years and each anniversary date thereafter. They are rated AA+ with a stable outlook given by CRISIL Ratings and CARE Ratings.
This issue attracted a robust response from investors with bids of more than two times the base issue size of Rs 3,000 crore, SBI said. The total number of bids received was 89, indicating participation from a diverse set of qualified institutional bidders — provident funds, pension funds, mutual funds and banks, among others.
“The wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest bank,” said Chairman CS Setty. The issuance helps the bank diversify and raise long-term non-equity regulatory capital.
SBI had set a base issue size of Rs 3,000 crore with a green-shoe option for Rs 2,000 crore. A corporate bond dealer said had the bank raised the full amount, the cut-off yield would have come around 7.88% or higher.
According to the bank’s exchange filing last month, SBI aims to raise Rs 60,000 crore in FY27 through debt instruments, which could include long-term bonds, AT1 bonds, and Tier 2 bonds.