SBI to raise Rs 3,500 cr via tier I bonds to strengthen capital adequacy

State Bank of India plans to raise up to Rs 3,500 crore through additional tier I ( AT-I) bonds to strengthen capital adequacy and support building loan portfolio.

Rating agency ICRA has assigned a rating of AA+ (hyb) with stable outlook for the Basel III-compliant tier-I bonds.

The letters ‘hyb’ indicate that this is rated hybrid subordinated instrument with equity-like loss-absorption features. These tier-I bonds are expected to absorb losses through the write-down mechanism.