What is subordinated debt?

Subordinated debt is debt that is repaid only after the issuer's senior debt if the issuer is wound up. Subordinated bonds pay more because holders accept a later place in the queue.

Banks, NBFCs and housing finance companies issue subordinated bonds because the Reserve Bank of India counts them as Tier II capital, subject to conditions such as a minimum maturity. See Tier 2 bonds.

Subordinated bonds are usually unsecured. Their rating is often a notch below the issuer's senior debt rating.

Subordinated debt: issuers on Bond Interpretation

212 outstanding bonds of this kind from 71 issuers are on Bond Interpretation. Issuers with the most:

Data as of 6 Nov 2026 (snapshot 20261106-2030). Methodology and sources

Related

Related terms: Tier 2 bond · Perpetual bond (AT1) · Unsecured NCD

Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.

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This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.

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