State Bank of India raises Rs 3,974 crore capital through AT1 bonds

Union Bank is likely to hit the market next week with AT1 bond issue of Rs 1,500 crore

State Bank of India (SBI) has raised about Rs 3,974-crore capital through additional tier 1 bonds (AT1 bonds). The coupon for the AT1 bonds was fixed at 7.55 per cent, cheaper by 17-basis points over the last issuance in September 2021.

Bond dealers said the response to SBI’s offering was good. While the indicative size was Rs 4,000 crore, the issue received bids over Rs 6,000 crore. It opted for Rs 3,974 crore with a coupon of 7.55 per cent. 

In September 2021, the bank had issued AT1 bonds for Rs 4,000 crore at 7.72 per cent. There have been rating upgrades