The additional tier-I bonds, or AT1 bonds will help bolster SBI’s capital adequacy and help prepare the bank for a credit growth lift-off, whenever it happens. This includes Rs.40,000 crore in common equity tier 1 and Rs.71,000 crore in AT1 bonds. On Tuesday, SBI also privately placed AT1 perpetual bonds worth Rs.2,100 crore with Yes Bank Ltd, at 9% per annum. ALSO READ | SBI plans to raise Rs11,100 crore through AT-1 bondsIDBI Bank Ltd on 30 August raised Rs.1,500 crore through an AT1 issue, at a coupon rate of 11.06%. Globally, there has been a lot of interest from high net worth individuals and sovereign wealth funds in AT1 bonds.

Source: Mint September 06, 2016 19:38 UTC