Explainer
Explainer: What are AT1 bonds and are they in trouble?
AIB raised €625 million in additional tier one bonds this week as the notes’ future is being discussed on the global stage
On Tuesday, AIB announced it had raised €625 million from the market through the issuance of additional tier one (AT1s) bonds, just days after reports that Basel Committee on Banking Supervision, the global banking regulator, had held a high level meeting to discuss the future of this debt type.
AIB’s fundraise was not unusual - AT1 bonds are used by most European banks to meet their capital requirements, with the market valued at $260 billion ...