Bank Bonds

The issuance of tier II as well as Tier I bonds was marked by increase in the coupon on instruments reflecting hardening of interest rates and tight liquidity

UCO Bank mulls AT1 offering to raise Rs 1,000 cr

'NBFCs need to be wary of rising borrowing costs as financial conditions tighten'

Bank intends to raise before Mar23 though approval is till 2024

Analysts cite credit growth surge, better risk profile of tier-2 bonds behind the rush

Over the last couple of weeks, banks have made a beeline to raise funds by issuing debt instruments

The quantum raised through Tier 2 bonds is set to rise much further in coming days as Axis Bank is slated to sell Rs 12,000 crore of such instruments on Friday

The base issue size for ICICI Bank's infra bonds was Rs 1,000 crore with green shoe option of Rs 4,000 crore

ICICI likely to issue long-term bonds, Axis mulls infra bond sale

Lender decision to not redeem the bonds does not indicate any weakness in capital position, says ratings agency

10-year paper priced at 7.51%, or about 17 bps above benchmark g-sec yield

The latest round of fundraising by banks comes at a time when credit growth has shown sustained momentum even as growth in deposits continues to lag

The planned issuance worth Rs 10,000 crore includes a greenshoe option of Rs 5,000 crore, the bank said

The fundraising, if approved, would be through a public issue or private placement during fiscal 2023, the bank added

Tier-2 bond sale plan comes amid sharp decline in bond yields

The decision to go slow on these fund-raising plans - despite the booming credit growth - came at a time when bond market conditions turned turbulent

Lender claims overwhelming response from investors, with bids of Rs 9,647 crore; issue oversubscribed 5x against base size of Rs 2,000 crore

The bank had notified an amount of Rs 7,000 crore to be raised through a single tranche of AT-1 bonds in order to augment capital.

Canara Bank plans Rs 1,500-2,000 cr AT1 sale; Axis Bank, too, mulls fundraise

The bonds will have a call option from the fifth year onwards and are rated AA+ by CRISIL, CARE and India Ratings, sources said