New Delhi: State-owned Dena Bank is looking to raise 1,000 crore from bonds to fund its growth plans.

The bank is planning to raise Basel-III compliant Additional Tier 1 (AT1) bonds for an amount of 1,000 crore, through private placement, Dena Bank said in a statement on Tuesday. Under the Basel-III norms, AT-1 bonds come with loss absorbency features, which means in case of stress, banks can write off such investments or convert them into common equity if approved by the Reserve Bank of India (RBI).

AT-1 bonds, which qualify as core or equity capital, are one of the means of raising capital by public sector banks that require 2.40 trillion by March 2019 to meet global norms on capital adequacy (Basel III).

Shares in Dena Bank closed at 60.45 per unit on the BSE, down 3.90% from the previous close.

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