SBI board approves proposal to raise Rs 8,931 crore via Basel III bonds

The bonds in the nature of debentures qualifying as tier 2 capital of the bank have face value of Rs 10 lakh

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Fundraising | Banks

The country’s largest lender State Bank of India (SBI) on Friday said its board has approved a proposal to raise Rs 8,931 crore by issuing Basel III compliant bonds to investors.

The committee of directors for capital raising at its meeting held on Friday accorded its approval to allot 89,310 Basel III compliant non-convertible, taxable, redeemable, subordinated, unsecured, fully paid-up debt instruments aggregating to Rs 8,931 crore to bond subscribers on August 21, 2020, SBI said.

The bonds in the nature of debentures qualifying as tier 2 capital of the bank have face value of Rs 10 lakh, bearing a coupon of 6.80 per cent payable annually for a tenor of 15 years