SBI soars nearly 3%, post fund-raising

Shares of State Bank of India rose nearly 3 per cent today as the lender raised Rs 2,100 crore by allotting perpetual bonds to Yes Bank.
The scrip gained 2.74 per cent to end at Rs 266.55 on BSE. During the day, it went up 4 per cent to Rs 270 -- its 52-week high.
The blue-chip scrip was the top gainer among the 30 Sensex components.
At NSE, it rose by 2.57 per cent to close at Rs 266.80.
The company added Rs 5,511.82 crore at Rs 2,06,916.82 crore in market valuation.
The country's largest lender, State Bank of India has raised Rs 2,100 crore by allotting Basel III compliant perpetual bonds to Yes Bank.

This is part of the bank's Rs 11,100-crore fund-raising plan that it intends to raise 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 Rs 2,100 crore in first tranche to Yes Bank," it said in a BSE filing.
These are additional tier I (AT1) non-convertible, perpetual, sub-ordinated, unsecured debt instruments in the form of debentures.

Perpetual bonds carry no maturity date, so they may be treated as equity, not debt.