India: Clarification On Issuance Of Perpetual Debt Instruments ("PDIs") Overseas

The Reserve Bank of India ("RBI") has clarified the amount of capital fund that can be raised overseas through issuance of PDI in Additional Tier 1 capital. In this regard it has stipulated that:

1) not more than 49% of the eligible amount can be issued in foreign currency and/or in rupee denominated bonds overseas; and

2) the term 'eligible amount', in this regard shall mean the higher of:

(a) 1.5% (one point five percent) of Risk Weighted Assets (RWAs); and

(b) Total Additional Tier 1 capital,

as on 31^st March of the previous financial year.

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12173&Mode=0

Originally published 05 October 2021

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