Mumbai: state Bank of India (State Bank Of India) has raised additional Tier-1 (AT1) bonds worth Rs 4,000 crore, offering a coupon rate of 7.72%. It comes close after HDFC Bank raised $1 billion by issuing AT1 bond in the international market.
During this, axis Bank has already tapped the international market to increase at 1 Bond. After a good response to the recent issues, several other public sector banks are looking to issue bonds in the local and international markets. According to bankers, AT1 bonds are the new interest because they offer higher rates of return and the debt market returns are very low.
public sector bonds Government ownership is seen as a low-risk investment. SBI’s bonds received bids worth over Rs 10,000 crore, which is almost 10 times the base size of Rs 1,000 crore. The country’s largest bank said, ‘Based on the feedback, the bank has decided to accept Rs 4,000 crore at a coupon of 7.72%.
The returns on these bonds are higher than traditional debt instruments as AT1 is viewed as an equity-like instrument as it carries some risk. SBI’s pricing on such loans issued by any Indian bank is the lowest since the Basel III capital regulations came into force in 2013, the bank said.
The bank has AAA credit ratings from local credit agencies, while the AT1 offering is rated AA+, which is the highest rating in the country for these instruments given their hybrid and high-risk nature, the bank said. .
During this, axis Bank has already tapped the international market to increase at 1 Bond. After a good response to the recent issues, several other public sector banks are looking to issue bonds in the local and international markets. According to bankers, AT1 bonds are the new interest because they offer higher rates of return and the debt market returns are very low.
public sector bonds Government ownership is seen as a low-risk investment. SBI’s bonds received bids worth over Rs 10,000 crore, which is almost 10 times the base size of Rs 1,000 crore. The country’s largest bank said, ‘Based on the feedback, the bank has decided to accept Rs 4,000 crore at a coupon of 7.72%.
The returns on these bonds are higher than traditional debt instruments as AT1 is viewed as an equity-like instrument as it carries some risk. SBI’s pricing on such loans issued by any Indian bank is the lowest since the Basel III capital regulations came into force in 2013, the bank said.
The bank has AAA credit ratings from local credit agencies, while the AT1 offering is rated AA+, which is the highest rating in the country for these instruments given their hybrid and high-risk nature, the bank said. .
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