AT-1 bonds return with Canara Bank

ments and come last in the repayment hierarchy. In the 2020 Yes Bank rescue, its AT-1 bonds were fully written off.

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Canara Bank is first to test AT-1 investor appetite.

(MINT)

Tier-II bonds are subordinated debt issued to meet regulatory requirements. These are repaid after senior debt holders but before equity holders.

Bankers believe that Canara Bank's AT-1 bond has been priced at a coupon of 7.5-7.55% and slightly higher than ICICI Bank's recent tier-II issuance.

The 10-year benchmark government bond yield is currently at around 6.51%.