SBI Set to Launch ₹10,000 Crore Rupee Bond Issuance, Reports Say
State Bank of India (SBI), the largest lender in India, is gearing up to commence its rupee bond issuances for the fiscal year 2023-2024 by the end of June or early next month, according to sources cited in a recent report.
Sources state that SBI will initiate these issuances with the sale of additional tier-1 bonds, as reported by the Economic Times.
The bond sale is expected to reach ₹10,000 crore, comprising a base size of ₹3,000 crore and a green shoe option of ₹7,000 crore, added the report.
The bonds are likely to be issued on June 29 and may feature a call option after 10 years, as revealed by the newspaper.
On June 9, SBI’s board approved fundraising of ₹50,000 crore through debt instruments for the financial year 2023-2024.
The debt instruments may include long-term bonds, Basel III compliant Additional Tier 1 Bonds, Basel III compliant Tier 2 Bonds, and other instruments, as stated by the state-run lender.
In April of this year, SBI successfully raised $750 million through bonds to support its offshore business expansion. The issuance consisted of $750 million senior unsecured fixed-rate notes with a maturity period of 5 years and a coupon rate of 4.875% payable semiannually under Regulation-S.
As of 1:21 pm, SBI’s share price on the Bombay Stock Exchange (BSE) stood at ₹576.20 per share.
The State Bank of India (SBI), an Indian multinational public sector banking and financial services institution, is a Fortune 500 company with its headquarters in Mumbai. With a rich heritage and a legacy spanning over 200 years, SBI has earned the trust of generations of Indians, making it the most trusted bank in the country.
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