SBI plans to raise funds through AT-1, infra & tier-2 bonds

26 Apr 2023 , 12:08 PM

As per the reports of Economic Times, the State Bank of India (SBI) is planning to raise capital using a combination of Additional Tier-1 (AT-1) bonds, tier-2 bonds, and infrastructure bonds in the coming months. The lender will start discussions are likely to start around May and by the end of the first quarter, the lender may finalise how much capital it would raise initially, the report said.

‘The Executive Committee of the Central Board in its meeting on 18th April 2023 has approved, inter alia, the following: “To examine the status and decide on long term fund raising in single/multiple tranches up to US$ 2 Billion (US$ Two Billion) under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2023-24′,’ said SBI in an exchange filing.

Like last year, they will come out with all three types – AT-1 bonds, infrastructure bonds and tier-2 bonds,’ as per the sources. ‘The issuances will be healthy, based on the initial assessments of credit growth and demand.’