State Bank of India to consider raising $2 billion via offshore bonds

State Bank of India, the country's largest lender, said on Monday it will consider raising $2 billion via offshore bonds.

The board will meet on April 18 to consider the fund raising, through a public offer or private placement of senior unsecured notes in US dollar or any other convertible foreign currency during the financial Year 2023-24, the bank said in an exchange filing.

Last month, SBI has raised Rs 3,717 crore through additional tier 1 bond sale. The bank said this is the third Basel III compliant additional tier 1 (AT1) bond sale and the latest issue was closed at a coupon rate of 8.25 per cent. The proceeds will be used to augment its additional tier 1 capital and overall capital base of the bank and also for strengthening capital adequacy in accordance with RBI guidelines.

These perpetual bonds have a call option after 10 years and every anniversary thereafter.