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