India's largest lender by assets, State Bank of India (SBI), announced on Monday, 10 April that it plans to raise $2 billion through offshore bonds.

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The Executive Committee of the Central Board will be meeting on 18 April 2023 to consider the proposal, according to a regulatory filing.

"To examine the status and decide on long-term fundraising in single/multiple tranches of up to $2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible foreign currency during the financial year 2023-24," SBI said.

The state lender plans to use the funds in augmenting Additional Tier 1 Capital and the overall capital base of the bank and strengthening capital adequacy in accordance with RBI Guidelines.

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Meanwhile, shares of SBI last traded at Rs 526.30 apiece, down 0.31 per cent or Rs 1.65 on BSE on Monday. The bank's shares have lost almost 15 per cent on a YTD (year-to-date) basis.

In January this year, SBI said that it has received its board approval to raise Rs 10,000 crore via infrastructure bonds during financial year 2023.

Last month, SBI had raised Rs 3,717 crore through Tier 1 bond at a coupon rate of 8.25 per cent. The sale of the bonds was intended to raise the bank's overall capital base and improve its capital adequacy ratio. It was SBI's third offering of Tier 1 bonds in the last fiscal year. These bonds have a perpetual tenor with a call option after 10 years and on each anniversary after that.

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