State Bank Of India Raises Rs 4000 Crore On Private Placement Basis

24 December, Mumbai

Public sector lender, State Bank of India (SBI), has raised Rs 4000 crore on private placement basis.

The bank has issued 40,000, Basel III compliant, Tier-ll bonds in the nature of debentures, of face value of Rs 10 lakh each at par.

The tenure of bonds is 10 years. The bond carries 8.33 per cent per annum coupon and with call option after 5 years, bank said in a filing with BSE.

Earlier, the committee of directors, duly authorised by the board, approved to raise upto Rs 12,000 crore, by way of issue of Basel III compliant tier II bonds. The bank intends to raise the capital at par, through private placement in a number of tranches.