Axis Bank : Fund raising via overseas AT1 issue

Axis Bank Fund raising via overseas AT1 issue

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.

Link:
https://economictimes.indiatimes.com/markets/bonds/axis-to-raise-up-to-1bn-via-offshore-at1-bonds-marked-as-esg/articleshow/85632610.cms