PNB to raise Rs 800 cr in AT1 bond, instrument has 'AA+' from India Ratings

Public sector lender Punjab National Bank is planning to raise up to Rs 800 crore through tier-1 bonds (AT 1 bonds), in order to shore up its capital base for business growth.

The Delhi-based lender has board approvals in place to raise Rs 12,000 crore in capital in FY23 through bond issuances (Rs 5,500 crore of additional Tier-1 bonds and Rs 6,500 crore of Tier-II bonds). Of this, PNB has already raised Rs 3,240 crore of AT-1 bonds and Rs 4,000 crore of Tier-II bonds in 9MFY23.

India Ratings has assigned "AA+" rating to the proposed offering. The rating factors