country's largest lender State Bank of India today said it has raised Rs 2,500 crore through bonds to fund its business growth.
The bank has "issued and allotted 25,000 AT1 Basel III compliant non-convertible, perpetual, subordinated, unsecured debt instrument in the nature of debenture, of face value Rs 10,00,000 each at par through private placement...," SBI said in a regulatory filing.
The bonds bears coupon rate of 8.75 per cent per annum payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2,500 crore in second tranche, it said.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, lenders can write off such investments or convert them into common equity if approved by the Reserve Bank (RBI).
Disclaimer: No Business Standard Journalist was involved in creation of this content
