State Bank of India on Wednesday said its Committee of Directors for Capital Raising authorised the bank to raise up to Rs 11,100 crore Additional Tier 1 (AT1) capital, by way of issue of a Basel-III compliant perpetual debt instrument in US dollars and/or rupees, at par.
In a notice to the BSE, India's largest bank said the capital-raising will be done through private placement to overseas and/or Indian investors, in such number of tranche(s), at such time(s) as may be considered appropriate and on such coupon(s) as may be decided at the time of actual issuance.
According to credit rating agency ICRA, the risk of default and severity of loss are significantly higher for AT1 instruments than for deposits or the senior debt of the issuing bank.
Readers' Choice
Haryana IAS may be forcibly retired for her long absence from duty
Bihar Chief Secretary may get service extension
Rajasthan Govt recommends halting pension of IAS officer in wheat scam case
Neeraj Mandloi is new ACS to Chief Minister, IAS reshuffle includes nine officers
RK Sharma takes charge as DGP
SBI to raise Rs 11,100 cr ATI capital
By IndianMandarins - 2016-08-25 11:49:04
State Bank of India on Wednesday said its Committee of Directors for Capital Raising authorised the bank to raise up to Rs 11,100 crore Additional Tier 1 (AT1) capital, by way of issue of a Basel-III compliant perpetual debt instrument in US dollars and/or rupees, at par.
In a notice to the BSE, India's largest bank said the capital-raising will be done through private placement to overseas and/or Indian investors, in such number of tranche(s), at such time(s) as may be considered appropriate and on such coupon(s) as may be decided at the time of actual issuance.
According to credit rating agency ICRA, the risk of default and severity of loss are significantly higher for AT1 instruments than for deposits or the senior debt of the issuing bank.
