India's largest lender State Bank of India (SBI) is set to raise Rs 2,000 crore through bonds issue. The bank will launch issue of series 3 lower Tier II bonds of face value of Rs 10,000 each and series 4 lower Tier II bonds of face value of Rs 10,000 each aggregating to Rs 1,000 crore, with an option to retain over-subscription upto Rs 1,000 crore for issuance of additional bonds aggregating to a total of upto Rs 2,000 crore.
This tranche 1 issue shall be opened from February 21, 2011 to February 28, 2011 for subscription. These bonds are proposed to be listed on Bombay Stock Exchange and National Stock Exchange.
Minimum lot size is one bond of face value of Rs 10,000 each. Retail investors can apply for a minimum of Rs 10,000 and in multiples of Rs 10,000 thereafter; maximum application will be for Rs 5 lakh i.e. 50 bonds.
In case of high networth individual - minimum application is for Rs 5.1 lakh worth of bonds and maximum is for Rs 250 crore. Non-institutional investors, corporate and qualified institiutional buyers can apply for a minimum of Rs 10,000 to maximum of Rs 250 crore.
Retail applicants will get interest at the rate of 9.75% per annum on series 3 lower Tier II bonds and 9.95% in case of series 4 lower Tier II bonds. Non retail applicants will get 9.3% and 9.45%, respectively. There is no put option and step up coupon in both series of bonds. These are unsecured bonds.
Redemption date for series 3 bonds will be 10 years from the deemed date of allotment and 15 years for series 4 bonds. These Series Bonds are not redeemable at the option of the bondholders or without the prior consent of RBI, according to document.
The bank has a call option in an amount of the principal amount outstanding of these series after five years and 10 years following the deemed date of allotment, respectively.
Rating agencies like CARE and CRISIL has assigned AAA and AAA/stable ratings to this bonds issue.
src-moneycontrol
Posts
No comments:
Post a Comment