SBI to Part Re­deem Tier II Bonds on Lower Yield

The Economic Times - - Markets: Beating Volatility -

State Bank of In­dia (SBI) is re­deem­ing a part of the lower tier II bonds it had is­sued in Fe­bru­ary 2011 be­fore ma­tu­rity. The state-run bank has ex­er­cised call op­tion on bonds it raised as part of the .₹ 2,000-crore bond pro­gramme. In an in­ti­ma­tion is­sued to bond­hold­ers, SBI in­formed the redemp­tion and in­ter­est amount will be cred­ited to the sub­scriber’s bank ac­count. Ac­cord­ing to ex­perts, SBI de­cided to re­deem these bonds as the 10-year yield, which is now hov­er­ing around 7.46%, is sig­nif­i­cantly lower than the coupon rate it of­fered to in­vestors in 2011.

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