Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / SBI said to choose banks for $1 billion AT1 bond
BackBack

SBI said to choose banks for $1 billion AT1 bond

SBI chose firms including Bank of America, Citigroup and JPMorgan for the offering of loss-absorbing capital instruments

SBI said it will raise as much as Rs11,100 crore ($1.7 billion) in additional Tier 1 capital through perpetual debt instruments in dollars or rupees. Photo: Pradeep Gaur/MintPremium
SBI said it will raise as much as Rs11,100 crore ($1.7 billion) in additional Tier 1 capital through perpetual debt instruments in dollars or rupees. Photo: Pradeep Gaur/Mint

Mumbai: State Bank of India has picked banks to work on a bond offering that could raise about $1 billion, in India’s first sale of US dollar additional Tier 1 bonds since the country implemented Basel III rules, people with knowledge of the matter said.

India’s largest lender chose firms including Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. for the offering of loss-absorbing capital instruments, according to the people, who asked not to be identified as the information is private. HSBC Holdings Plc, National Bank of Abu Dhabi PJSC, SBI Capital Markets Ltd. and Standard Chartered Plc are also working on the sale, the people said.

Also Read: SBI to raise $1 billion through AT1 bonds

The Reserve Bank of India (RBI) has been encouraging sales of so-called AT1 bonds to help lenders comply with Basel III capital standards by the March 2019 deadline. Indian banks require $90 billion in additional capital to meet the target, with most of that needed by state-run lenders, according to Fitch Ratings Ltd.

A spokesman for State Bank of India (SBI) said he couldn’t immediately comment.

The Indian central bank announced last month it will allow banks to count perpetual rupee-denominated bonds sold offshore to help meet this goal. The SBI said 24 August it will raise as much as 11,100 crore ($1.7 billion) in additional Tier 1 capital through perpetual debt instruments in dollars or rupees.

The Mumbai-based lender raised 2,100 crore from a private placement of additional Tier 1 bonds with a 9% coupon, according to an exchange filing Tuesday. Bloomberg

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 Sep 2016, 02:19 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App