This is the first AT1 Bond issuance in the domestic market post the new SEBI regulations. The issue attracted overwhelming response from investors with bids in excess of Rs. 10,000 crores received against a base issue size of Rs. 1,000 crores.

Based on the response, the Bank has decided to accept Rs. 4,000 crores at a coupon of 7.72%, This is the lowest pricing ever offered on such debt, issued by any lndian bank since the implementation of Basel III capital rules in 2013. The AT 1 instrument is perpetual in nature, however, it can be called back by the issuer after five years or any anniversary date thereafter.

while the Bank has MA credit rating from domestic credit rating agencies, the AT1 offering is rated AA+, which is the highest rating in the country for these instruments, in view of the hybrid and high-risk nature of these instruments.