India's SBI to issue first rupee-denominated perpetual debt of 2026, sources say
- 'If things work out, the bank should complete the issuance next week or at least before the central bank’s monetary policy decision on August 5'
MUMBAI: State Bank of India is set to become the first bank to tap the market for perpetual bonds in 2026, with plans to raise 50 billion rupees ($517.76 million) within the next two weeks, three bankers familiar with the matter said on Friday.
The country’s largest lender is in advanced talks with merchant bankers and investors to issue Basel III-compliant additional Tier I perpetual bonds with a five-year call option, the bankers said.
“If things work out, the bank should complete the issuance next week or at least before the central bank’s monetary policy decision on August 5,” one of the bankers said.
The bankers requested anonymity as the matters are private, while SBI did not reply to a Reuters email seeking comment.
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State-run Canara Bank was the last lender to tap the market, raising 35 billion rupees through Basel III-compliant additional Tier I perpetual bonds at a 7.55% coupon in November 2025.
SBI last issued perpetual bonds in October 2024, raising 50 billion rupees at a 7.98% coupon with a 10-year call option.
In June, SBI’s board approved raising up to 600 billion rupees through debt this financial year, including long-term infrastructure bonds, Basel III-compliant additional Tier I securities and Tier II instruments.
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