SBI Cards and Payment Services has raised Rs 500 crore through the issue of bonds on a private placement basis. "The board of directors has approved the allotment of 5,000 fixed rate, unsecured, rated, taxable, redeemable and senior non-convertible debentures aggregating to Rs 500 crore on a private placement basis," SBI Card said in a regulatory filing to the stock exchanges. The bonds carry an interest rate of 5.55 per cent per annum and will mature on June 14, 2024.
Bonds are fixed income instruments issued by companies. Instead of approaching banks for loans, some companies choose to issue bonds and garner the required money from investors who buy the bonds at a pre-determined rate of interest.
The bonds will be listed on the wholesale debt market segment of BSE, SBI Card added.
At 10:20 am, SBI Cards and Payment Services shares were trading higher by 0.3 per cent at Rs 1083.35 on the BSE as against the Sensex's gains of 0.5 per cent.