Bank of Baroda (BOB) stated, it proposes to raise up to Rs.1,650 crore for funding business expansion,from Additional Tier I(AT-1) bonds.

As per BoB, finance committee of the bank has approved issuance of AT-1 capital bonds compliant with Basel III capital norms of RBI for minimum amount of Rs.500 crore with green shoe option, total issuance not to exceed Rs.1,650 crore in one or multiple issuance.

These are perpetual debt instruments, and they do not carry any maturity date nor are they redeemable,so these bonds are eligible to be treated as equity than debt.

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