Page 2 - At1 Bonds

PNB, IOB, DCB bank to offer AT1 bonds; may have to offer premium rates

It is important to note that AT1 bonds are unsecured, perpetual bonds that banks issue to improve their core capital base

What are AT1 bonds, and why are Credit Suisse's worth $17 bn now wiped out?

The wipeout of $17 billion worth of AT1 bonds in the UBS-Credit Suisse deal has spooked investors as they now assess if this can happen to their AT1 holdings in other banks as well

Credit Suisse's $17 bn of risky bonds are now worthless after UBS takeover

The bond wipe out is the biggest loss yet for Europe's $275 billion AT1 market, far eclipsing the only other write-down to date of this type of security

State Bank of India raises Rs 3,717 cr from its third AT1 bond sale

The nation's largest lender State Bank of India on Wednesday raised Rs 3,717 crore through additional tier 1 bond sale. The bank said this is the third Basel III compliant additional tier 1 (AT1) bond sale and the latest issue was closed at a coupon rate of 8.25 per cent. The proceeds will be used to augment its additional tier 1 capital and overall capital base of the bank and also for strengthening capital adequacy in accordance with RBI guidelines. These perpetual bonds have a call option after 10 years and every anniversary thereafter. On the investor interest, the bank said the issue attracted an overwhelming response from investors with bids of Rs 4,537 crore from 53 bids from provident and pension funds and insurance companies and was oversubscribed by about 2.27 times against the base issue of Rs 2,000 crore. Given the high response, the bank has decided to accept Rs 3,717 crore at a coupon rate of 8.25 per cent payable annually. This represents spread of 66 bps over the

SBI raises Rs 3,717 cr via AT-1 bonds at 8.25% with 10-yr call option

AT-1 coupon rates rise as inflation, US bond selloff sour view on bonds

SC issues notices on pleas against HC order on YES Bank's AT1 bonds

The Supreme Court on Friday issued notices to Axis Trustee Services Ltd on a batch of appeals filed by the Reserve Bank of India (RBI) and others challenging a Bombay High Court order quashing a decision of the Yes Bank Administrator to write off Additional Tier 1 (AT-1) bonds. The top court also extended the stay on the operation of the Bombay High Court order quashing the decision of the Yes Bank Administrator to write off AT-1 bond worth Rs 8,415 crore as part of the bailout in March 2020. A bench headed by Chief Justice D Y Chandrachud, however, assured the AT-1 bond investors that it would try to find out some kind of solution to the financial trouble being faced by them after senior advocate Mukul Rohatgi, appearing for Axis Trustee Services Ltd, said the invested money has become zero for no fault of theirs. It was the top officials of the bank who brought down the bank. Their men are in jail. Our money has become zero... we are not Tata-Birla. We are institutional investors.

State Bank of India issues Rs 4.5K-crore in AT1, half of the amount planned

Bonds allocated at coupon of 8.2% with call option on Feb 2033

YES Bank approaches Supreme Court against Bombay HC decision on AT-1 bonds

On January 20, the Bombay High Court had quashed YES Bank's decision to write off AT-1 bonds in March 2020

SBI likely to sell Rs 10,000 crore of AT-1 bonds around February 20

The bonds, which are likely to receive a rating of AA+, may go up for bidding on February 20 with issuance scheduled for the next day

TMS Ep354: NSE colocation case, influencer regulation, markets, AT-1 bonds

Has SAT order changed the course of NSE colocation case? What will new regulatory regime mean for the influencer industry? What do past trends reveal about markets and Budgets? What are AT-1 bonds?

Bombay High Court quashes write-off of YES Bank's additional AT1 bonds

The final order is yet to be uploaded on the court website and the bank can choose to appeal in Supreme Court

SBI board approves Rs 10,000-cr AT1 bonds offering to support biz growth

Bank intends to raise before Mar23 though approval is till 2024

BOI to raise up to Rs 2,500 cr in capital via AT1 bonds for biz growth

Lender's board to meet on November 4 to consider raising capital in one or more tranches

Canara Bank to raise Rs 3,000 cr in AT1, tier-II capital in H2FY23

The bank, which aims to keep capital adequacy at the 16% and above level, has already raised Rs 6,000 cr via these instruments in H1

We find some stress in restructured accounts, says UCO Bank MD & CEO

'Corporate demand is for both working capital and term loans'

AT-1 bond returns are attractive compared to FDs, but factor in the risks

Their spread over G-Secs of comparable maturity have also declined compared to historical averages

Two years after YES Bank fiasco, AT-1 bonds rekindle investor interest

HNI, insurance demand, better bank performance driving interest in instrument

Sebi imposes Rs 2 crore penalty on Rana Kapoor in AT1 bonds case

The AT1 bonds of Yes Bank were entirely written off as a part of a restructuring scheme

Bank of Maharashtra raises Rs 710 cr via Basel III Additional Tier 1 bonds

State-owned Bank of Maharashtra (BoM) on Wednesday said it has raised Rs 710 crore from bonds to fund business growth. The fund raised via Basel III compliant Additional Tier 1 (AT1) bonds of Rs 710 crore (including green shoe option of Rs 610 crore) is at a coupon rate of 8.74 per cent, the bank said in a statement. The issue garnered overwhelming response from investors with subscription of 10 times against base issue size of Rs 100 crore. The capital raised through the AT1 bonds will support the business growth of the bank. The AT1 instrument is perpetual in nature; with call option after 5 years.

HDFC Bank's Rs 3,000-crore AT1 bonds get FY23's best rate at 7.84%

Canara Bank plans Rs 1,500-2,000 cr AT1 sale; Axis Bank, too, mulls fundraise