The issuance of this bond is likely at 7.85%-7.90% coupon, the bank said citing market expectations.
This is part of its Rs 8500 crore capital-raising plan for the fiscal. The bank would be looking to raise Rs 4000 crore through tier 2 bonds in the future.
On Wednesday, Indian government bonds showed some fluctuations but still managed to outperform their global counterparts. Rising oil prices and increased concerns regarding supply chains pushed international bond yields higher. However, India’s banking system’s surplus liquidity helped stabilize local debt. Market participants are now closely monitoring upcoming inflation figures and central bankers’ policy moves, with the Reserve Bank of India potentially using liquidity-reducing measures to keep the market in check.
The proposed AT-1 bonds will be perpetual debt instruments with a call option of five years, subject to regulatory clearance.
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