Axis Bank raises AT1 funds at 4.1%

Current GK ( Master) Banking Awareness

Axis Bank Ltd. said it had ‘successfully’ priced its $600-million issuance of Sustainable Additional Tier 1 (AT1) notes in the overseas markets at 4.1%, ie, 30 basis points lower than the initial price guidance.
The dollar-denominated, Basel III compliant AT1 notes offering was subscribed 3.8 times ahead of the final pricing guidance announcement, it said. It is the first dollar-denominated AT1 bond ever by an Indian issuer in a Sustainable format, the bank said in a press statement.
“This successful transaction, which is also the largest single-tranche USD bond issuance ever for Axis Bank, reflects the faith and confidence that international investors have reposed in the bank’s franchise and robust credit and business model,” said Neeraj Gambhir, group executive & head, Treasury, Markets & Wholesale Banking Products, Axis Bank.
Axis Bank Limited is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It sells financial services to large and mid-size companies, SMEs and retail businesses. As of 30 June 2016, 30.81% shares are owned by the promoters and the promoter group.
Headquarters: Mumbai
CEO: Amitabh Chaudhry (1 Jan 2019–)
Founded: 3 December 1993, Ahmedabad
Subsidiaries: Freecharge, Axis Finance Limited etc.