State Bank of India (SBI) announced that it would issue senior unsecured notes to raise up to $2 billion for the next financial year 2023-24.
The Executive Committee of the Central Board in its meeting on April 18 mentioned that US dollars or other convertible foreign currencies will be used for the senior unsecured notes. The board also said that the notes might be offered as a public offer or as a private placement.
Last month, SBI raised 3,717 crore Rs through its third Basel III compliant Additional Tier 1 bond issuance for FY23, at a coupon rate of 8.25 percent. The tenor of these bonds is perpetual with a call option after 10 years and every anniversary thereafter.
SBI plans to utilise the proceeds from these bonds for augmenting Additional Tier 1 Capital and the overall capital base of the bank and for strengthening capital adequacy in accordance with the Reserve Bank of India (RBI) guidelines
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