InvestorQ : Why is BOB planning to raise funds via the AT1 bond route?
Anjana Aiyar made post

Why is BOB planning to raise funds via the AT1 bond route?

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Khushi Patel answered.
2 months ago
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Bank of Baroda will raise Rs2,500 crore via Additional Tier 1 bonds (AT1 Bonds). AT1 bonds are perpetual debt instrument and classified as Tier 1 capital. It gives higher returns to investors but entail a higher risk too. The bank can even stop paying interest on these bonds if the capital ratios fall below a threshold. The bank can also write down these bonds as in Yes Bank case.

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