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Allahabad Bank raises Rs 600 cr through bonds

Press Trust of India  |  New Delhi 

State-owned today said it has raised Rs 600 crore through private placement of bonds.

The lender has on date successfully raised Additional Tier I (AT-1) capital of through private placement of AT 1 perpetual bonds Series III aggregating to Rs 600 crore, said in a regulatory filing on stock exchanges.

The bond carries an annual coupon of 9.34 per cent, it said.

Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such 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 banks.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 08 2017. 21:57 IST