State Bank of India likely to sell Rs 5,456-crore AT1 bonds next week

UCO Bank may also issue such bonds

State Bank of India plans to issue a total of Rs 5,456 crore worth of additional tier-1 (AT1) bonds, with the bidding for the securities likely to be conducted on March 8, sources told Business Standard.

SBI’s AT1 bonds, which are likely to have a call option after 10 years, are expected to be rated AA+, the sources said. The bond sale has a base size of Rs 2,000 crore and a greenshoe option of Rs 3,456 crore. The payment for the bond issuance would occur on March 9.

Another state-owned lender, UCO Bank, is said to be looking to