SBI Bonds

Tightens pricing by 40 bps on oversubscription

10-year paper priced at 7.51%, or about 17 bps above benchmark g-sec yield

The planned issuance worth Rs 10,000 crore includes a greenshoe option of Rs 5,000 crore, the bank said

Lender claims overwhelming response from investors, with bids of Rs 9,647 crore; issue oversubscribed 5x against base size of Rs 2,000 crore

Canara Bank raised Rs 2,000 crore worth of AT1 bonds at a rate of 7.99 per cent, taking its total issuance of such bonds so far in the year to Rs 4,000 crore

SBI Cards and Payment Services (SBI Card) has raised Rs 500 crore by issuing bonds on a private placement basis. The pure-play credit card issuer said it allotted 5,000 fixed rate, unsecured, taxable and redeemable bonds on Thursday, in the nature of non-convertible debentures of Rs 10 lakh each aggregating to Rs 500 crore. The tenure of the bonds is three years and is set to mature on September 15, 2025. The bonds bear a coupon of 7.39 per cent per annum. On Thursday, shares of SBI Card closed flat at Rs 958.20 apiece on the BSE.

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.

The bonds will have a call option from the fifth year onwards and are rated AA+ by CRISIL, CARE and India Ratings, sources said

Non convertible Taxable Perpetual Subordinated Unsecured Basel III compliant Additional Tier 1 Bonds in the nature of debentures of face value Rs 1 Crore each

While SBI may opt for Rs 4,000-crore tier-II bond sale, Bank of Baroda looks to issue AT-1 bonds worth Rs 3,000-4000 crore in tranches

Last month, SBI's board had provided approval for raising up to Rs 11,000 crore via additional tier-I and tier-II bonds to meet regulatory requirements and support business growth

State Bank of India (SBI) on Wednesday received the board's approval to raise up to Rs 11,000 crore through issuance of bonds.

To comply with Basel-III capital regulations, banks need to improve and strengthen their capital planning processes

Some analysts question whether SBI's bond sale will revive offshore issuance even if its deal is successful

The outlook on all the long-term ratings is positive

Traders are hoarding and hunting SBI's perpetual notes by betting it will buy them back within 10 weeks