New Delhi: State Bank of India (SBI) today said it has raised Rs 2,500 crore from bonds to fund business expansion. The bank has issued and alloted 25,000 AT1 Basel III compliant bonds, SBI said in a regulatory filing on stock exchanges.
“It is in nature of debentures of face value Rs 10 lakh each at par through private placement bearing coupon rate of 8.39 per cent per annum payable annually with call option after 5 years,” it said.
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 RBI. AT-1 bonds qualify as core or equity capital.