The Hindu Business Line : ING Vysya to raise Rs 95 cr

ING Vysya Bank Ltd is raising Rs 95 crore capital through issue foreign currency perpetual bonds. A bank release said the entire issue would be subscribed by the parent ING Bank NV. The bonds would have a call option at the end of ten years. At current exchange rates, the amount translated to about $19.5 million. The release added the amount would be drawn down by October 22. The funds would be used to beef up the ING Vysya Bank’s capital.

The bank’s capital to risk weighted asset ratio as at the end of the first quarter of the current financial year was 10.38 per cent. The ING group holds about 44.21 per cent of the stake in the paid up equity of Rs 102.49 crore. Inclusive of investments by the International Finance Corporation, Foreign Institutional Investors and Non-resident Indians, foreign holdings currently comprise about 71.66 per cent of the paid up equity.

The release did not mention the pricing of the perpetual bond issue. However, an ING spokesperson said the pricing would be well within the RBI’s prescribed ceiling for foreign currency borrowings. Currently, the prescribed ceiling is 450 basis points over the six month London Inter Bank offered rates for maturities in excess of 7 years. –

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