State Bank of India to raise Rs 5,000 cr through AT-I bonds this week

State Bank of India (SBI) is looking to raise Rs 5,000 crore this week in the domestic debt capital through non-convertible, perpetual, subordinated, unsecured Basel III compliant additional tier I (AT-I) bonds, sources said.

The issue size is Rs 2,000 crore, with a green shoe option of Rs 3,000 crore. The bonds have been rated AA+ by domestic rating agency CRISIL and CARE. These AT-I bonds will have a call option on October 24, 2034 -- ten years after its issuance.

SBI is raising this quantum to replace the existing bonds.  

AT-1 bonds are perpetual bonds which have certain equity-like characteristics and features. These instruments are used by banks to augment their core equity capital.

In September, SBI had raised Rs 7,500 crore in tier-II bonds.