Country’s largest lender State Bank of India issued Basel III-compliant bonds with a face value of Rs. 10 Lakh each bearing a coupon rate of 9.45% per annum payable annually were subscribed on Friday. SBI raised Rs. 1,251 Cr. by issuing these bonds.
In a regulatory filing, SBI said, “The Committee of Directors for Capital Raising at its meeting held today on 22 March 2019 deliberated and accorded approval to allow 12,513 non-convertible, taxable, perpetual, subordinated, unsecured Basel III-compliant additional tier-I bonds, for inclusion in additional tier-I capital of the bank…aggregating to ?1,251.30 crore.”
The central board of the bank at its meeting held on Friday has conferred the approval for extension of the validity period for raising equity capital up to Rs. 20,000 crore from the market by way of preferential allotment, qualified institutional placement, follow-on public offer, rights issue or any other mode or a combination of these till March 31, 2020.
In addition, these bonds are payable annually with a call option after 5 years or any anniversary date thereafter.