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Home / Companies / News /  SBI board approves raising additional AT1 bonds up to 5,000 cr in FY21

New Delhi: The State Bank of India board on Wednesday approved raising additional AT1 bonds up to 5,000 crore in FY21.

The state-owned lender said the fundraising amount is within the capital plan earlier approved. The bonds bear a coupon rate of 7.74 per cent.

"The Central Board of the Bank at its Meeting held today on 30th September, 2020 inter alia accorded approval for raising of capital by way of issuance of Basel III compliant debt instruments in INR during FY21as under:

Raising of additional AT1 Bonds to the extent of 5,000 crore by way of issuance of Basel III compliant debt instruments in lNR, within the overall capital plan earlier approved by the Board for raising Equity during FY21," the lender said in a regulatory filing.

While SBI has AAA credit rating from local credit agencies, its AT1 offering is rated AA+, which is the highest rating in the country for these instruments in view of the hybrid and high-risk nature of these instruments.

At 2:50 pm on Wednesday, SBI stock on BSE was trading 0.4% higher at 185.85.

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