Axis Bank, Bank of India eyeing to raise funds through AT-I bonds

In FY25 so far, banks have raised Rs 8,000 crore through perpetual bonds. In comparison, banks raised Rs 20,706 crore in FY24 and Rs 31,394 crore in FY23

Two major lenders, Axis Bank and Bank of India (BoI), are looking to tap the domestic debt capital market to raise funds through additional tier – I (AT-I) bonds to strengthen their capital base. 

 

While Axis Bank is looking to raise up to Rs 2,000 crore through AT-I bonds, state-owned BoI is eyeing to raise upto Rs 2,500 crore through the same instruments.

 

Domestic rating agency CRISIL has assigned ‘AA+’ rating to the private sector lender’s proposed AT-I bond issuance, while India Ratings has assigned ‘AA’ to the BoI’s proposed issuance.

 

AT-I bonds are perpetual in nature and include provisions