The State Bank of India (SBI) raised Rs 3,717 crore by issuing third Basel III Additional Tier 1 bonds in the current FY23 on March 8. The bond has a tenor of 10 years coupon rate for the bond is set at the rate of 8.25%. The proceeds from the bond will help the country’s largest lender in adding to the Additional Tier 1 Capital strengthening its capital balance requirements specified by the RBI.
The bond from the national bank piqued the interest of investors. The bond raised bids worth RS 4,537 crore, 2.27 times more than the intended base price of RS 2,000 crore as stated by SBI. "Based on the response, the bank has decided to accept Rs 3,717 crore at a coupon rate of 8.25% payable annually", said SBI in a statement.
The share of SBI is trading at Rs 558.70 as on Thursday’s closing as the fall 1.08% over the day’s trading.
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