PNB raises Rs 974 cr via AT1 bonds against indicative amount of Rs 2,000 cr

Hardening yields drives decision to raise lower amounts; Bond market sources said coupon was firmed up at 8.75%

With bond yields hardening, public sector lender Punjab National Bank on Friday raised Rs 974 crore in capital through additional tier I (AT1) bonds as against an indicative amount of Rs 2,000 crore.

Bond market sources said the coupon for AT1 bonds was firmed up at 8.75 per cent, a level the bank was comfortable with. The call option is available after five years. While the money was available at higher yields there was no urgency to go beyond 8.75 per cent, as the bank's capital position was comfortable. The base issue size was Rs 500 crore with green issue