SBI makes history printing first Indian offshore AT1

By Addison Gong
15 Sep 2016

State Bank of India (SBI) succeeded in pricing the first offshore Basel III additional tier one (AT1) offering from an Indian name this week, but a bullish pricing strategy meant orders were muted and it has struggled in secondary. Despite the glitches, many believe the deal has set an important benchmark, writes Addison Gong.

There was plenty riding on SBI’s trade. This week Fitch Ratings estimated that some $90bn is needed by Indian banks if they are to meet Basel III standards by the end of fiscal year 2019, and around 30% of that is expected to be raised through AT1s. However, ...

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