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SBI to sell 15 year bonds at 8.9%

SBI to sell 15 year bonds at 8.9%
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First Published: Mon, Dec 15 2008. 06 00 PM IST
Updated: Mon, Dec 15 2008. 06 00 PM IST
Mumbai: State Bank of India (SBI) will offer a coupon of 8.90% on a Rs20 billion ($417 million) issue of 15 year upper Tier-II subordinated debt, three sources close to the transaction said.
“The issue would be launched on 17 December, 2008,” one source said.
The bonds would have a call option at the end of the 10th year, allowing the bank to buy back the bonds early.
“If the call option is not exercised by the bank, the coupon rate from the end of the 10th year would rise to 9.4%,” sources said.
Axis Bank, Kotak Mahindra Bank, Yes Bank, SBI Capital Markets and HSBC are the arrangers to the issue.
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First Published: Mon, Dec 15 2008. 06 00 PM IST