SBI Approves Bond Issue Of Up To $2 Bn For FY24
The State Bank of India (SBI) board of directors approved a bond fundraise of up to USD 2 billion for FY24 on Tuesday.
SBI plans to raise USD 2 billion in foreign currency bonds in single or multiple tranches in 2023-24, according to a stock exchange filing.
In its meeting on 18 April 2023, the Central Board's executive committee approved, among other things, “to examine the status and decide on long-term fundraising in single or multiple tranches up to USD 2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2023-24.”
SBI raised Rs 3,717 crore in a supplementary tier 1 bond auction last month. The bank stated that this is the third Basel III compliant extra tier 1 (AT1) bond offering, with the most recent issue closing at an 8.25 per cent coupon rate. The funds will be utilised to supplement the bank's additional tier 1 capital as well as its total capital base, as well as to increase capital adequacy in accordance with RBI rules.
These perpetual bonds have a call option after ten years and on each subsequent anniversary.
