PNB raises Rs 2,000 crore via AT1 capital bonds at lower rate of 8.75%

Gains from easing bond yields worldwide; better rate comes against indicative yield of 9-9.25%

Benefitting from the dip in bond yields worldwide, public sector lender Punjab National Bank has raised Rs 2,000 crore in capital through tier I bonds at a fine rate of 8.75 per cent.

Bond dealers said the paper from the public-sector lender was placed at a lower yield against an indicative rate of 9-9.25 per cent. The 8.75 per cent rate is seen as aggressive, coming mostly from the easing bond of yields worldwide last week, and tracking the fall in crude oil prices and US-Treasury yields.

According to Clearing Corporation of India data, the yield on the benchmark 10-year