SBI raises Rs.7000 crore through Basel-III bonds-The Hindu-22-09-2020
The bonds qualify as tier II capital of the bank.
The bonds have a face value of Rs.10 lakh each, bearing a coupon rate of 6.24% per annum payable annually for a tenor of 10 years.
There is a call option after 5 years and on the anniversary thereafter.
Call option means the issuer of the bonds can call back the bonds before the maturity date by paying back the principal amount to investors.
The Committee of Directors for Capital Raising at its meeting accorded its approval to allot 70,000 Basel III compliant non-convertible, taxable, redeemable debt instruments in the nature of debentures aggregating to Rs.7,000 crore, to bond subscribers.