Axis Bank sets coupon for dollar AT1 bonds at 4.1%, raises $600 mn

This is 30 basis points lower than the initial guidance of 4.4 per cent

Axis Bank has fixed the price for dollar denominated additional tier I bonds (AT1 bonds) at 4.1 per cent, 30 basis points lower than the initial guidance of 4.4 per cent. The Indian private sector lender is raising about $600 million through AT1 bonds.

This is second AT1 bond offering in international market from Indian banking pack within fortnight. Last week, the country's largest private sector lender, HDFC Bank, raised $1 billion via AT1 bonds priced at 3.7 per cent.

Banking sources said the peak order book for Axis Bank issue was $2.3 billion. Some of prominent investors include Blackrock,