State Bank of India - Issuance of BASEL III compliant Additional Tier 1 Bonds

Khaitan & Co advised State Bank of India (SBI) as the issuer counsel for the issue of non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up BASEL III compliant Additional Tier 1 Bonds in the nature of debentures by State Bank of India with issue of INR 3000 crores and a green shoe option of INR 2000 crores, aggregating to INR 5000 crores on private placement basis.

This was SBI’s first perpetual bond issuance this financial year. The issue received 89 bids from a diverse set of qualified institutional bidders, including provident funds, pension funds, mutual funds and banks, with SBI retaining ₹4,691 crores at a cutoff yield of 7.75 per cent. The bonds are rated AA+ with a “stable” outlook by Crisil Ratings and CARE Ratings.