IDFC First Bank raises Rs 1,500 cr via tier-2 bond offering
The bonds are Basel-III compliant bonds and listed as non-convertible debentures with a face value of Rs 1 crore each
- Jun 27, 2023,
- Updated Jun 27, 2023 6:15 PM IST
IDFC First Bank on Tuesday said it has successfully raised Rs 1,500 crore through tier-2 bonds in the domestic Indian bond market.
The bonds, issued through private placement on the NSE e-bidding platform, are unsecured, subordinated, rated, listed, non-convertible, taxable, redeemable and fully paid-up. They are Basel III compliant and listed as non-convertible debentures with a face value of Rs 1 crore each.
"These bonds have received favourable ratings with CRISIL, assigning them of rating of AA+/Stable and India Ratings & Research giving them a rating of IND AA+/Stable," said the lender.
Notably, IDFC FIRST Bank’s tier-2 bond ratings were upgraded by CRISIL Ratings Limited in June 2023 from AA/Positive to AA+/Stable.
The issuance attracted participation from domestic qualified institutional investors, including corporates, public pension funds, provident funds and insurance companies.
The NSE e-bidding platform witnessed strong interest, resulting in over subscription of the issue.
The tier-2 bonds have a tenor of 10 years and offer a coupon rate of 8.40%. They also include a call option at the end of five years.
With the capital raise, IDFC First Bank’s capital adequacy, calculated based on the financials as of March 31, 2023, will reach 17.68%.
This increased capital will provide the bank with greater flexibility for its growth prospects, it said.
IDFC First Bank on Tuesday said it has successfully raised Rs 1,500 crore through tier-2 bonds in the domestic Indian bond market.
The bonds, issued through private placement on the NSE e-bidding platform, are unsecured, subordinated, rated, listed, non-convertible, taxable, redeemable and fully paid-up. They are Basel III compliant and listed as non-convertible debentures with a face value of Rs 1 crore each.
"These bonds have received favourable ratings with CRISIL, assigning them of rating of AA+/Stable and India Ratings & Research giving them a rating of IND AA+/Stable," said the lender.
Notably, IDFC FIRST Bank’s tier-2 bond ratings were upgraded by CRISIL Ratings Limited in June 2023 from AA/Positive to AA+/Stable.
The issuance attracted participation from domestic qualified institutional investors, including corporates, public pension funds, provident funds and insurance companies.
The NSE e-bidding platform witnessed strong interest, resulting in over subscription of the issue.
The tier-2 bonds have a tenor of 10 years and offer a coupon rate of 8.40%. They also include a call option at the end of five years.
With the capital raise, IDFC First Bank’s capital adequacy, calculated based on the financials as of March 31, 2023, will reach 17.68%.
This increased capital will provide the bank with greater flexibility for its growth prospects, it said.