SBI raises Rs 4,000 crore via AT1 bonds

Following the new Sebi regulations, this is the first AT1 Bond issuance in the domestic market.

Published: 02nd September 2021 03:30 AM  |   Last Updated: 02nd September 2021 10:54 AM   |  A+A-


State Bank of India. (File Photo | EPS)

By Express News Service

NEW DELHI:  State Bank of India (SBI) has raised Rs 4,000 crore via Basel- compliant Additional Tier 1 (AT1) bonds. The country’s largest lender announced on Wednesday that it raised the amount at a coupon rate of 7.72%.

Following the new Sebi regulations, this is the first AT1 Bond issuance in the domestic market. The circular issued by the market regulator said that the deemed residual maturity of Basel III additional tier-1 (AT-1) bonds will be 10 years until 31 March, 2022. The period will be increased to 20 and 30 years over the subsequent six-months. 

From April 2023 onwards, the residual maturity of AT-1 bonds will become 100 years from the date of issuance. This is also the lowest pricing ever offered on such debt issued by any Indian bank since the implementation of Basel III capital rules in 2013, it added. The issue garnered overwhelming response from investors with bids in excess of Rs 10,000 crore received against a base issue size of Rs 1,000 cr.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp