The country’s largest lender SBI on Monday said it has raised ₹6,000 crore by issuing Basel III compliant bonds. In June, the bank had received approval from its central board for raising fresh additional tier 1 (AT 1) capital of up to ₹14,000 crore.
The committee of directors for capital raising at its meeting on October 18, 2021, accorded its approval to allot 6,000 Basel III compliant fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to bond subscribers, SBI said in a regulatory filing.
The non-convertible, taxable, perpetual, subordinated, unsecured bonds of the face value of ₹1 crore each aggregates to ₹6,000 crore. The bonds bear a coupon of 7.72 per cent per annum payable annually, SBI said. Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt. Shares of SBI closed at ₹497.85 apiece on BSE, up 1.50 per cent from the previous close.