National Stock Exchange of India Limited (NSE), India’s leading stock exchange, through its Electronic Bidding Platform, NSE- EBP, facilitated the INR 2000 crores debt fund-raising program for India’s leading bank, the State Bank of India. This Debt program will help meet SBI’s Tier 1 capital requirement for the current financial year.
The capital raise was of the nature of Non-Convertible, Taxable, Redeemable, Subordinated Bonds, which are Basel III compliant. The Bonds are Unsecured Debt instruments issued in the form of debentures. The issue size was INR 2000 crore, with Green Shoe option of INR 3,000 crore to retain over subscription. The issue was oversubscribed over five times of the issue size and is the largest Basel III compliant Tier I perpetual bonds single tranche successful issue in current financial year with accepted subscription of more than INR 4,000 crore on the Electronic Bidding Platform.
The Perpetual Bonds are priced at par with face value of INR 10 Lakhs per bond with an exercisable call option after five years. Mr Prashant Kumar, DMD and CFO, SBI, said, “Over five times oversubscription for SBI’s Tier I perpetual bonds reaffirms the confidence of investor community in SBI. Digital initiatives in private placements segment by NSE, specifically NSE-EBP, have enabled us to broaden our access to the wider pool of investors and further deepen our debt markets.”
Mr Vikram Limaye, MD and CEO, NSE said, “It is a momentous occasion, with SBI successfully placing their perpetual bonds with oversubscription of over five times on NSE-EBP. It is a matter of pride for NSE, as we could provide a mechanism for single highest fund raise of around INR 10,376 crores on EBP on a single day this year. NSE remains committed towards deepening of debt markets in India and helping corporates diversifying their investor base.”
The Electronic Bidding Platform (EBP) is an initiative by SEBI, mandated for private placement of debt issues by corporates. This Platform has been utilized by Banks, NBFCs, Housing Finance companies and other corporates to raise debt funding. The platform helps the issuers to widen the access to investors including Pension Funds, Provident Funds, Insurance Companies, Mutual Funds, Banks and other QIBs and non QIBs.
NSE is the preferred choice amongst leading blue chipped corporates, banks, NBFCs and state owned companies. NSE-EBP is the most versatile platform with bespoke parameters offering best in class functionalities including reporting and in-principle approvals which offers the issuer with multiple bidding parameters to opt for bidding, based on prevailing market environment. Majority of the PSU issuers are active on the NSE-EBP portal owing to its flexibility and feature richness.