Mumbai, Aug 30 (IANS): Axis Bank has started issuing Additional Tier-1 bonds as part of its Rs 35,000 crore debt raising plan.

In a regulatory filing on Monday, the bank said that the issuance is part of the existing Global Medium Term Notes (GMTN) programme of the bank. The Offering Circular for the GMTN programme has been updated on Singapore Exchange Limited (SGX) and the International Securities Market (ISM).

"The bank has initiated the process of issuing of the debt instruments, in the form of the Additional Tier 1 Notes (Notes) in foreign currency, subject to market conditions. This will be a sustainable bond under the Sustainable Financing Framework of the Bank," it said.

It said that the notes will not be offered or sold in India under the applicable laws, including the Companies Act, 2013, as amended.

In April, the Board of Directors of Axis Bank had authorised the bank to borrow or raise funds in Indian or foreign currency by issue of debt instruments including long term bonds, non-convertible debentures, perpetual debt instruments, AT-1 bonds, infrastructure bonds and Tier II capital bonds or such other debt securities, from time to time, up to an amount of Rs 35,000 crores in domestic and overseas markets, in one or more tranches.

Shares of the bank surged on Monday post the announcement of issuance of debt instruments. Around 2.05 p.m., its shares on the BSE were at Rs 774.30, higher by Rs 21.80 or 2.90 per cent from its previous close.