The Hindu Business Line : SBH’s Rs 160-cr bond issue fully subscribed

Hyderabad, Feb. 24 The Rs 160-crore private placement of lower tier-II subordinated debt issue from the State Bank of Hyderabad (SBH) has been fully subscribed.

According to the Hyderabad-headquartered associate bank of State Bank of India (SBI), the issue was opened on February 22 and declared closed on Saturday as the entire issue was subscribed on day one itself.

The SBH offered through private placement the new issue of subordinated debts called “SBH Bonds (sixth series), which are redeemable, unsecured, non-convertible and in the nature of promissory note totalling Rs 160 crore.

With a tenor of 115 months and coupon rate of 9.15 per cent per annum and interest payment annually, they will be listed on the Bombay Stock Exchange, the bank said in a press release here.

SBH said the present issue of lower tier-II bonds will adequately strengthen its capital base not only to support its projected growth in business but also help meet additional provision of capital charge on market risks on investment portfolio and operational risk in compliance with Basel II requirement by March 31, and beyond.

The bank’s capital adequacy ratio was 12.51 per cent as on March 31, 2007 with total capital funds of Rs 3,773.18 crore, that is, Rs 2,488.38 crore under tier I and Rs 1,284.80 under tier II.

The bank, which has a total business of Rs 85,000 crore now, expects to cross the milestone figure of one lakh crore soon.

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