The board of directors in its meeting held on Wednesday approved fundraising of capital for an amount up to Rs 12,000 crore through Basel Ill Compliant AT-1 and tier II Bonds, bank informed the BSE.
The Delhi-based lender raised Rs 8,214 crore in capital through AT1 and tier II bonds in 2022-23 (FY23) as against board approval of Rs 12, 000 crore. It issued AT1 bonds worth Rs 4,213 crore and tier II bonds worth Rs 4,000 crore in Fy23.
On March 24, 2023, PNB raised Rs 974 crore in capital through additional tier I (AT1) bonds as against an indicative amount of Rs 2,000 crore in the backdrop of hardening bond yields. This was its last capital raising exercise in Fy23. The coupon for AT1 bonds was firmed up at 8.75 per cent, a level the bank was comfortable with. The call option is available after five years.
While the money was available at higher yields there was no urgency to go beyond 8.75 per cent, as the bank’s capital position was comfortable. The base issue size was Rs 500 crore with green issue of Rs 1,500 crore. T he bank had raised over Rs 500 crore via AT1 bonds at 8.4 per cent in December 2022.
First Published: Mar 29 2023 | 11:48 PM IST