You are here: Home » Finance » News » Banks
Business Standard

PNB plans to raise up to Rs 2,000 cr through additional AT1 bonds

Bond dealers said the base size of the offering is for Rs 500 crore with a green shoe option of Rs 1,500 crore

Topics
Punjab National Bank | at1 bonds | sbi

BS Reporter 

PNB, Punjab National Bank
Representative image

Public sector lender (PNB) plans to raise up to Rs 2,000 crore via additional tier I (AT 1) bonds on Tuesday. This is likely to be followed by State Bank of India’s AT 1 bonds worth Rs 4,000 crore next week.

Bond dealers said the base size of the offering is for Rs 500 crore with a green shoe option of Rs 1,500 crore. There is increasing interest in the instruments of public sector as the bad loan situation has become better, recoveries have improved and prospects of further stress look less.

Last week, Canara Bank raised Rs 1,500 crore via AT I bonds. The bank received a total bid amount of Rs 4,699 crore. Of this, issuance of Rs 1,500 crore was accepted at a coupon rate of 8.05 per cent.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, December 07 2021. 01:33 IST
RECOMMENDED FOR YOU
.