Question : How much of fund has Axis Bank decided recently(August 2021) to raise up via overseas AT1 issue ?
a. 1.0 billion dollar
b. 0.5 billion dollar
c. 1.5 billion dollar
d. 2.5 billion dollar
Ans. a.
Related facts —
- Axis Bank has recently(August 2021) decided to raise up 1.0 billion dollar funds via overseas AT1 issue.
- The issue is expected to be launched in a week or two from Gujarat GIFT City depending on the outcome of the Jackson Hole policy meeting in the US.
- This move should help the Mumbai-based private sector lender reduce its financing costs.
- AT1 issue —
- A bond is nothing but an acknowledgement of debt by a borrower (bond issuer) wherein an investor lends a loan to a borrower for a fixed rate of interest with a predefined payment frequency and a maturity date on which the borrower should repay the principal.
- AT1((Additional Tier-1) bonds are different from other bonds in the sense is that they never mature which means that bond issuers will never ever pay back the principal.