SBI to allot bonds aggregating to Rs2,500cr; stock ends 2% higher

SBI to allot bonds aggregating to Rs2,500cr; stock ends 2% higher

State Bank of India (SBI) in a filing on Tuesday, informed the exchanges that its Committee of Directors have granted its approval for capital raising held on the same day.

The Committee has accorded its assent to allot 25,000 Basel III compliant non-convertible, perpetual, subordinated, full paid-up debt instruments. These unsecured debentures will be taxable.

The debt instruments qualifying as AT 1 capital of the bank, of face value of Rs10 lakh each, at par will bear a coupon of 7.73% p.a. payable annually. Along with the coupon, they will also have a call option after 5 years and on anniversary dates thereafter.

The aggregate amount of the debentures to be allotted to bond subscribers totals up to Rs2,500cr, the bank said.

SBI ended at Rs243.85 per piece up by Rs5.15 or 2.16% from its previous closing on the BSE.