The country's largest lender has raised Rs 3,717 crore through its third Basel III compliant Additional Tier 1 bond issuance in the current financial year on Wednesday at coupon rate of 8.25%.
The proceeds of bonds will be utilized in augmenting Additional Tier 1 Capital and overall capital base of the bank and for strengthening capital adequacy in accordance with RBI Guidelines.The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter.
The issue attracted overwhelming bids of Rs 4,537 crore and was oversubscribed by about 2.27 times against the base issue of Rs 2,000 crore. The investors were across provident & pension funds & insurance companies.
Prior to this, the bank had raised Additional Tier 1 Bonds of Rs 4,544 crore on 21 February 2023 at a spread of 71 bps over the corresponding FBIL G-Sec par curve on the date of bidding. The bank has AA+ with stable outlook credit rating from domestic credit rating agencies for these instruments.
Of the total outstanding of bank's Additional Tier 1 Bonds is Rs 49,842.70 crore, Basel III AT1 bonds with call option of 5 years is Rs 41,581.70 crore and AT1 bonds with call option of 10 years is Rs 8,261 crore.
State Bank of India (SBI) is an Indian multinational, public sector banking and financial services statutory body. As of 31 December 2022, the Government of India held 57.50% stake in the bank.
The PSU major reported 68.47% jump in standalone net profit to Rs 14,205.34 crore on a 25.18% rise in total income to Rs 98,083.77 crore in Q3 FY23 over Q3 FY22.
The scrip declined 0.56% to settle at Rs 564.80 on Wednesday, 8 March 2023.
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