Comments
Private sector lender IDFC First Bank has raised ₹1,500 crore through private placement of Tier-2 bonds.
Sudhanshu Jain, CFO and Head – Corporate Centre, IDFC First Bank said with the Tier-2 capital raise, the capital adequacy of the lender would be enhanced to 16.5 per cent.
“We see strong credit demand in our business lines and such capital will help boost our overall growth prospects,” he said in a statement on Tuesday.
Life Insurance Corporation of India subscribed to more than 60 per cent of the issue size, the bank said.
“IDFC First Bank has raised ₹1,500 crore through private placement of unsecured, subordinated, rated, listed, non-convertible, fully paid-up, taxable, redeemable Basel III Compliant Tier-2 bonds (in the nature of debentures) for a face value of ₹1 crore each,” the bank said.
The bonds will be redeemed in accordance with the terms of issue on its original maturity of 10 years, it further said, adding that the bank may exercise a call option after completion of five years from the date of allotment and yearly after that.
The initial issue size was ₹1,000 crore with a Green Shoe Option to retain over-subscription up to ₹500 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.