The recent ratings India investment upgrade by Standard & Poors has helped the State Bank of India raise $700 million overseas at 15-25 basis points lower than the pre-upgrade rates. The bank raised $400 million via hybrid tier I perpetual bonds and $300 million through floating rate notes. | |
| The bank is also raising Rs 1,000 crore through upper tier II bonds in the domestic market. With the $400 million (Rs 1,800 crore) bond issue and upper tier II bonds, the total amount of capital raised by the bank has touched Rs 10,000 crore in 2006-07. |
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| "The rating upgrade after the issues were launched and the upgrade has definitely helped to get fine rates in international market. The order book for hybrid bonds was about $ 2 billion. The proceeds hybrid bond and FRN will be retained abroad to support business growth and shore up the capital adequacy ratio" , senior SBI official said. |
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| As on December 31, the bank's overall capital adequacy as a proportion of risk-weighted assets was 11.86 per cent. It has maintained CAR above 11 per cent in 2006-07. |
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| With the $700 million offering, SBI has almost exhausted the $2 billion medium term note programme and the bank will work on fresh MTN plans for the next financial year. |
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