Private sector Axis Bank today said it has proposed to raise Rs 3,500 crore by issuing bonds to fund business growth.
The bank proposes to raise funds by issuing unsecured subordinated, perpetual, additional Tier I, Basel III compliant Non-Convertible Debentures of the face value of Rs 10 lakh each aggregating to Rs 3,500 crore, Axis Bank said in a regulatory filing.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity, if approved by the RBI.
AT-1 bonds qualify as core or equity capital.
The board will consider the proposal to issue and allot the securities through circular resolution, it said.
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