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SBI sells largest AT-1 tranche at lowest rate for any bank so far this year

The bank had notified an amount of Rs 7,000 crore to be raised through a single tranche of AT-1 bonds in order to augment capital.

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“There was already assured demand for a large portion of the notified amount of SBI’s bonds; there are several entities such as tech companies and others which only buy bonds by them,” a senior treasury official said.

Bhaskar Dutta Mumbai
India’s largest lender State Bank of India on Wednesday issued additional tier-1 (AT1) bonds worth a total of Rs 6,872 crore at a cut-off of 7.75 per cent, the lowest rate set for such debt issuances by any bank so far in the current financial year.

The bank had notified an amount of Rs 7,000 crore to be raised through a single tranche of AT1 bonds in order to augment capital.

With several investors having expressed keen interest in the banking giant’s debt offering, the cut-off was well below 7.84 per cent set for AT1 bonds issued by the country’s

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First Published: Sep 07 2022 | 8:02 PM IST

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