SBI to raise Rs 41.16 billion by issuing Basel III compliant bonds

The country's largest lender SBI will raise Rs 41.16 billion by issuing Basel III compliant bonds to add up to its tier 2 capital, the bank said Friday.

The committee of the directors for capital raising has accorded approval to allot Basel III compliant debt instruments qualifying as tier 2 capital of the bank, SBI said in a regulatory filing.

According to the bond programme, the bank will issue 41,159 non-convertible, taxable, redeemable, subordinated, unsecured debt instruments in the nature of debentures of face value of Rs 1 million each, bearing coupon of 8.90 per cent per annum aggregating to Rs 41.15 billion, it said.

The interests are to be paid annually for a tenor of 10 years with call option after 5 years to various bond subscribers, SBI said.

Stock of SBI traded 0.61 per cent down at Rs 283.95 on BSE.