SBI raises $700 million at lower rates with S&P support
16 Feb 2007
Mumbai: Standard & Poors has helped the State Bank of India raise $700 million overseas at 15-25 basis points lower than the pre-upgrade rates mainly on the back of the recent ratings India investment upgrade by it. The bank raised $400 million via hybrid tier I perpetual bonds and $300 million through floating rate notes.
The bank is also raising Rs1,000 crore through upper tier II bonds in the domestic market. With the $400 million (Rs1,800 crore) bond issue and upper tier II bonds, the total amount of capital raised by the bank has touched Rs10,000 crore in 2006-07.
As on December 31, the bank's overall capital adequacy as a proportion of risk-weighted assets was 11.86 per cent. It has maintained CAR above 11 per cent in 2006-07.
With the $700 million offering, SBI has almost exhausted the $2 billion medium term note programme and will work on fresh MTN plans for the next financial year.