The rash to raise new-style bank capital picked up globally in 2014, as more countries began to phase in Basel Ⅲ capital regulations. In India, the first Basel Ⅲ-compliant capital instrument was sold within the first three months of the new regulations coming into force, but a promising start has since given way to some tough questions. India began the transition to Basel Ⅲ on April 1 2013 and, in June the same year, state-owned United Bank of India printed a Rs5bn (US$81.68m) 10-year Tier 2 bond, the first to come with contractual loss-absorption language, a requirement under the new global standards. UBI's bonds pay a coupon of 8.75% and were entirely sold to state-owned Life Insurance Corp of India.
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