The country's largest lender, SBI, will raise 4,116 crore by issuing Basel III-compliant bonds, which will add to its class 2 capital, the bank said Friday. The Fundraising Committee of Directors has approved the issuance of Basel III-compliant debt securities, referred to as the bank's equity, as reported by TSI in a document filed with SBI. In accordance with the bond program, the bank will issue 41,159 non-convertible, taxable, redeemable, subordinated and unsecured debt securities in the form of debentures with a par value of 10 lakh each, bearing a coupon of 8.90% per year, totaling Rs 4,119.00. Crore, he said.
Interest must be paid annually for a term of 10 years with option to purchase after 5 years to different bond underwriters, said SBI. The SBI stock was traded 0.61 percent at Rs 283.95 on BSE.