SBI raises Rs 3,717 cr via AT-1 bonds at 8.25% with 10-yr call option

AT-1 coupon rates rise as inflation, US bond selloff sour view on bonds

State Bank of India, the country’s largest lender raised funds worth Rs 3,717 crore at a coupon rate of 8.25 per cent through additional tier-1 (AT-1) bonds on Wednesday. The bonds have a ten-year call option.

“The proceeds of bonds will be utilized in augmenting Additional Tier 1 Capital and overall capital base of the Bank and for strengthening capital adequacy in accordance with RBI Guidelines,” SBI said.

“The issue attracted overwhelming response from investors with bids of Rs. 4537 crores and was oversubscribed by about 2.27 times against the base issue of Rs 2000 crores. The total number of bids were