InFocusInvestmentsStock Market

SBI To Raise USD 1.5 Bn Through Public Offer or Private Bonds

Sharing is caring!

State Bank of India (SBI) said its board will meet next week to consider raising up to USD 1.5 billion (about Rs 11,330 crore) through a public offer and/or private placement of bonds.

The Executive Committee of the Central Board is scheduled to meet on June 11 to consider long-term fund raising, the country’s largest lender said in a regulatory filing.

The committee will “examine the status and decide on long term fund raising in single/ multiple tranches up to USD 1.5 billion through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2020-21,” the filing said.

Earlier in November, SBI had raised Rs 3,813.60 crore through perpetual bonds to fund its business growth.

It had allotted 38,136 non-convertible, taxable, subordinated, unsecured Basel-III compliant AT-1 bonds in the nature of debentures to raise the funds.

Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the Reserve Bank of India.

Stock of SBI closed 0.46 per cent down at Rs 174.05 on the BSE on Thursday.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: