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SBI raises Rs 4000 crores via ATI Bonds.


Ankur Bhattacharya

Kolkata, September 09 (HS) : Country’s largest public sector Bank and lender, State Bank of India (SBI) today sold Rs 4,000 crore of the Basel Compliant Additional Tier 1 (AT1) bonds at a coupon of 7.74 per cent.

This was the lowest pricing ever offered on such debt issued by any bank since the country started implementing the stringent Basel III capital rules in 2013, SBI souces here said.


They said as the aggregate bids were in excess of Rs 6,000 crore, the Bank exercised the full green-shoe option of Rs 3,000 crore over and above the base issue size of Rs 1,000 crore.


While SBI has AAA credit rating from local credit agencies, its AT1 offering is rated AA plus, which is the highest rating in the country for these instruments in view of the hybrid and high-risk nature of these instruments. While the AT 1 instrument is perpetual in nature, it can be called back by the lender after five years or any anniversary date thereafter.

This issuance comes after a successful issue of Tier 2 bonds last month by SBI, aggregating to Rs 8,931 crore, at 6.80 per cent, the sources said and claimed that it was the best ever pricing for Tier 2 debt instruments. 


Hindusthan Samachar