New Delhi: State Bank of India, the country's largest lender, has raised Rs 2,100 crore by allotting Basel III-compliant perpetual bonds to Yes Bank.
This is part of the bank's plans to raise funds to the tune of Rs 11,100 crore on a private placement basis by issuing debt instruments.
"The bank on September 6, has issued and allotted 21,000 AT1 Basel III compliant debentures of face value of Rs 10 lakh each at par through private placement bearing coupon rate of 9 per cent per annum with call option after five years or any coupon payment date thereafter aggregating to Rs 2,100 crore in first tranche, to Yes Bank," it said in a filing to the BSE.
These are additional Tier I (AT1) non-convertible, perpetual, subordinated, unsecured debt instruments in form of debentures.
Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt.
Earlier on August 24, SBI had said "the Committee of Directors for Capital Raising authorised the Bank to raise up to Rs 11,100 crore Additional Tier 1 capital, by way of issue of Basel III compliant Perpetual Debt instrument in dollar and/or Indian rupee, at par, through private placement to overseas
and/or Indian investors".
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
