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SBI sells first Basel III AT1 bonds to raise ₹4,691 crore
The AT1 offering drew subscriptions more than twice the initial ₹3,000 crore base size, with bids totaling 89.
State Bank of India raised ₹4,691 crore through its first Basel III-compliant Additional Tier 1, or AT1, bond issuance of the current financial year, according to LiveMint Markets, citing Bloomberg.
The lender accepted bids above the base issue size after the deal drew subscriptions of more than twice the initially planned amount. SBI received 89 bids from institutional investors including provident funds, pension funds, mutual funds, and banks.
SBI set the coupon rate at 7.75% and structured the notes as perpetual, with an option for the bank to call the bonds after five years and on each anniversary thereafter. The bonds were assigned an AA+ rating with a stable outlook by CRISIL Ratings and CARE Ratings.
The bank said the issuance helps diversify funding sources while strengthening its long-term non-equity regulatory capital base. AT1 bonds are designed to support bank capital under the Basel III framework, with loss-absorption features such as potential write-downs or conversion into equity, subject to Reserve Bank of India approval.