{"id":21039,"date":"2020-09-10T16:48:53","date_gmt":"2020-09-10T16:48:53","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=21039"},"modified":"2020-09-10T16:48:53","modified_gmt":"2020-09-10T16:48:53","slug":"cheap-borrowing-costs-help-sbi-raise-rs-4000-cr-via-risky-at1-bonds-at-record-low-coupon-rate","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=21039","title":{"rendered":"Cheap borrowing costs help SBI raise Rs 4,000 cr via risky AT1 bonds at record low coupon rate"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2079420 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/09\/sbi.jpg\" alt=\"SBI, sbi\u00a0AT1 bonds,\u00a0Basel III capital rules,\u00a0\u00a0sbi AT1 bonds\u00a0coupon rate, latest news on SBI\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2079420 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/09\/sbi.jpg\" alt=\"SBI, sbi\u00a0AT1 bonds,\u00a0Basel III capital rules,\u00a0\u00a0sbi AT1 bonds\u00a0coupon rate, latest news on SBI\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2079420 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/09\/sbi.jpg\" alt=\"SBI, sbi\u00a0AT1 bonds,\u00a0Basel III capital rules,\u00a0\u00a0sbi AT1 bonds\u00a0coupon rate, latest news on SBI\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/09\/sbi.jpg 660w, https:\/\/images.financialexpress.com\/2020\/09\/sbi-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/09\/sbi-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/09\/sbi-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/09\/sbi-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/09\/sbi-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/09\/sbi-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The bank has claimed that it has been the lowest pricing ever offered on such debt issued by any bank since the country started implementing Basel III capital rules in 2013.<\/span><\/figure>\n<\/div>\n<p><span style=\"font-weight: 400;\"><a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">State Bank of India<\/a> (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">SBI<\/a>) on Wednesday said it had raised Rs 4,000 crore through additional tier 1 (AT1) bonds at a coupon rate of 7.74%. The bank has claimed that it has been the lowest pricing ever offered on such debt issued by any bank since the country started implementing Basel III capital rules in 2013.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAs the aggregate bids were in excess of Rs 6,000 crore, the bank exercised the full greenshoe option of Rs 3,000 crore over and above the base issue size of Rs 1,000 crore,\u201d it said. While the AT1 instrument is perpetual in nature, it can be called back by the lender after five years or any anniversary date thereafter, the bank said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Swaminathan J, deputy MD, SBI, said, \u201cThe apprehensions that prevailed in the market post the <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/yes-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Yes bank<\/a> AT1 write-down in March 2020 have been firmly put behind.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The interest payout on such bonds is better than the cost of equity for the banks and it provides a good risk-adjusted return to the investors, he added.<\/span><\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/sbi-raises-rs-4000-crore-via-at1-bonds-at-7-74-coupon-rate\/2079417\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bank has claimed that it has been the lowest pricing ever offered on such debt issued by any bank since the country started implementing Basel III capital rules in 2013. State Bank of India (SBI) on Wednesday said it had raised Rs 4,000 crore through additional tier 1 (AT1) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21040,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-21039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/09\/sbi.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/21039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21039"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/21039\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/21040"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}