SBI raises Rs3,000 crore through tier-II bonds

The Pak Banker - - COMPANIES/BOSS -

The coun­try's largest len­der State Bank of In­dia (SBI) has raised Rs.3,000 crore through tier-II bonds, the bank said in an ex­change fil­ing on Fri­day.

SBI has priced its 10-year bonds at a yield of 8.45%. Th­ese bonds have a call op­tion at the end of the fifth year un­der which the len­der has the op­tion to call back its bonds from in­vestors and re­pay them ahead of the ten­ure if it wishes to.

On 11 Fe­bru­ary, SBI chair­man Arundhati Bhat­tacharya had said that the bank would raise tier-II cap­i­tal dur­ing the fourth quar­ter of the fis­cal year.

Pub­lic sec­tor lenders have been rais­ing cap­i­tal from the bond mar­ket through tier-ii and tier-I bonds and such is­suances have risen since Oc­to­ber.

In­vestors, how­ever, gave a cold shoul­der to some of the bank bond is­suances, es­pe­cially low-rated ones. Lenders such as Bank of In­dia had to de­fer their is­sues at least once be­fore suc­cess­fully rais­ing money. Some such as Dena Bank tapped un­usual sources such as Power Fi­nance Corp. to place their bonds and get funds.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.