SBI sells largest AT-1 tranche at lowest rate for any bank so far this year

India’s largest lender State Bank of India on Wednesday issued additional tier-1 (AT1) bonds worth a total of Rs 6,872 crore at a cut-off of 7.75 per cent, the lowest rate set for such debt issuances by any bank so far in the current financial year.

The bank had notified an amount of Rs 7,000 crore to be raised through a single tranche of AT1 bonds in order to augment capital.

With several investors having expressed keen interest in the banking giant’s debt offering, the cut-off was well below 7.84 per cent set for AT1 bonds issued by the country’s