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SBI eyes raising up to USD 1.5 bn

Jun 4, 2020, 18:44 IST
PTI
New Delhi, Jun 4 () State Bank of India (SBI) on Thursday 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.

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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.

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

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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