Axis Bank jumped 4.86% to Rs 786.35 after the bank said that it has initiated the process of issuing of the debt instruments, in the form of the Additional Tier-1 (AT-1) Notes in foreign currency, subject to market conditions.
The notes, being a sustainable bond, will fall under the Sustainable Financing Framework of the bank. The issuance is part of the existing Global Medium-Term Notes (GMTN) programme of the bank.
The notes will not be offered or sold in India under the applicable laws, including the Companies Act, 2013, as amended, the bank said.
On 27 April 2021, the board of Axis Bank had authorized the bank to borrow/raise funds in Indian currency/foreign currency by issue of debt Instruments including but not limited to long term bonds, non-convertible debentures, perpetual debt instruments, AT-1 bonds, infrastructure bonds and Tier-II capital bonds or such other debt securities as may be permitted under the guidelines issued by the Reserve Bank of India, from time to time, up to an amount of Rs 35,000 crore in domestic and overseas markets, in one or more tranches.
The resolution for the same was passed by the bank's shareholders at its 27th annual general meeting (AGM) held on 30 July 2021.
Axis Bank is a private sector bank offers the entire spectrum of financial services to customer segments covering large and mid-corporates, MSME, agriculture and retail businesses. As on 30 June 2021, the bank had a network of 4,528 domestic branches and extension counters situated in 2,559 centres.
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The private sector bank reported a 94.2% jump in standalone net profit to Rs 2,160 crore on a 2.4% rise in total income to Rs 19,591 crore in Q1 FY22 over Q1 FY21.
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