The Hindu

SBI to raise ₹8,931 cr. via Basel III bonds

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SBI on Friday said its board had approved a proposal to raise ₹8,931 crore by issuing Basel III-compliant bonds to investors.

The bonds in the nature of debentures, qualifying as tier-2 capital of the bank, have a face value of ₹10 lakh, bearing a coupon of 6.8% payable annually for a tenor of 15 years.

SBI said the bonds come with a call option after 10 years or any anniversar­y date thereafter to bond subscriber­s. Call option means the issuer of the bonds can call back the bonds before the maturity date by paying back the principal amount to investors. SBI shares rose 1.87% to close at ₹198.35 apiece on the BSE on Friday.

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