SBI raises Rs.3k cr from bonds to fund business growth
SBI raises Rs.3k cr from bonds to fund
business growth
PTI
| New Delhi | 19
February, 2016
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Country's
largest lender State Bank of India on Friday said it has raised Rs.3,000 crore
from bonds to fund business growth.
The
bank on Thursday issued 30,000, Basel III compliant, Tier-ll bonds, in the
nature of debentures, of face value of Rs.10 lakh each at par, SBI said in a
statement.
Bonds
with 10 years maturity will give 8.45 per cent annually to investors who
subscribed such bonds on private placement basis, it said. They come with call
option of 5 years.
The
bank through these bonds raised Rs.3,000 crore, it said.
Recently,
SBI got board approval to raise Rs.15,000 crore from various means, including
public offer and overseas issuance of shares, in the next 14 months.
The
fund raised will help the bank to meet global risk norms, Basel III, which will
kick in from March 2019.
The
committee of directors, at January 15 meeting, authorised the bank to seek
shareholders' approval and to write to Government of India and RBI seeking
their approval for extending the period of approval for raising capital up to
Rs.15,000 crore till March, 2017, SBI had said.
The fund would be
raised either through follow on public issue, qualified institutional
placement, rights issue, private placement, Global Depository Receipt, American
Depository Receipt or combination of these, it had said.
Read more at http://www.thestatesman.com/news/business/sbi-raises-rs-3k-cr-from-bonds-to-fund-business-growth/124645.html#zWV5yFrHth0UvYe2.99
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