SBI may soon begin to issue Rs 10,000 crore rupee bonds

13 Jun 2023 , 10:56 AM

State Bank of India (SBI) is likely to commence its rupee bond issuances for the financial year 2023-24 by the end of June or early next month.

As per the sources, the bank will sell off additional tier-I bonds.

The sources also stated that the bond sale could for a consideration up to Rs 10,000 crore. It will have a base size of Rs 3,000 crore and a green shoe option of Rs 7,000 crore.

The bonds might include a call option that allows them to be redeemed after a period of 10 years, and the potential issuance date is expected to be June 29.

SBI’s board of directors approved raising funds worth Rs 50,000 crore through bond sales in the current fiscal year last week.

Following the successful issuance of dollar bonds in April, SBI may not go the overseas bond route at this time, as aggressive rate hikes by global central banks have triggered volatility in international bond markets.

SBI initiated the sale of AT-1 bonds in September during the preceding fiscal year.

At around 10.53 AM, SBI was trading 0.35% lower at Rs 576.70, against the previous close of Rs 578.65 on NSE. The counter touched an intraday high of Rs 581.40.

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