AT1 Bonds Current Affairs, GK & News

AT1 bonds

AT1 bonds or additional tier 1 bonds are unsecured bonds which have no maturity rate i.e. they have a perpetual tenure. These bonds are issued by banks to strengthen their tier 1 capital (core capital). They are subordinate to all other types of debts except common equity. They have call option, which the issuer uses ..

What are AT1 bonds?

India’s largest lender State Bank of India (SBI) announced on September 3, 2021 that it has raised Rs 4,000 crore through additional Tier 1 (AT1) bonds. Key Points AT1 bonds were raised at a coupon rate of 7.72%. It the first such issuance in domestic market after the Securities and Exchange Board of India (SEBI) ..

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What are AT1 bonds?

Department of Financial Services (DFS), under finance ministry, has sent a memorandum to the chairman of Securities and Exchange Board of India (Sebi) and has asked it to withdraw a rule treating AT1 bonds (perpetuals) which is having 100-year maturity. Highlights The circular was issued by SEBI on March 10, 2021 regarding the AT1 bonds ..

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