The bank is planning to raise Basel-III compliant Additional Tier 1 (AT1) bonds for an amount of Rs 1,000 crore, through private placement, Dena Bank said in a statement today.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, which means in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.
AT-1 bonds, which qualify as core or equity capital, are one of the means of raising capital by public sector banks that require Rs 2.40 lakh crore by March 2019 to meet global norms on capital adequacy (Basel III).
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