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SEB bond coupon rate of 10.5-11% seems low: Andhra Bank

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  • Published On: January 07, 2013
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Sources told NDTV that as part of its SEB restructuring program, the Finance Ministry has proposed to allow SEB’s convert part of their loans to bonds at an interest rate of 10.5-11 per cent. BA Prabhakar, chairman of Andhra Bank, says that although the bank has already provided for some net present value (NPV) hit on expectations of a lower coupon rate, the bank would have to do more if the rate is between 10.5-11 per cent.
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