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Last Updated : Oct 20, 2016 12:18 PM IST | Source: Moneycontrol.com

SBI eyes Tier-I bond issue again, hopes to raise over Rs 3000 cr

Speaking to an established newspaper, an SBI executive said this move is to take advantage of the falling long-term bond yields.

 
 
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State Bank of India is opting for additional tier-1 (AT1) bonds for the second time in the recent past to raise up to Rs 3,300 crore to boost its capital adequacy. The lender had in September issued AT1 bonds worth Rs 2,100 to Yes Bank at an interest rate of 9 percent.

These bonds are assigned a rating of 'AA+' by Crisil. Crisil has assigned this rating keeping in mind the lender and its associates' position as the market leader in the banking sector and its profitability. It also considers the group's business and financial risk profile.

Speaking to an established newspaper, an SBI executive said this move is to take advantage of the falling long-term bond yields.

The five-year government bonds have seen yields shrink to 6.71 percent from 7.02 percent in September. The ten-year bonds have also seen similar decline to 6.73 percent from 7.12 percent earlier.

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First Published on Oct 20, 2016 09:13 am
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