IDFC FIRST Bank raises Rs 1,500 crore of Tier-2 bonds in domestic Indian Bond markets

BusinessWire India

Mumbai (Maharashtra) [India], June 27: IDFC FIRST Bank, today announced raising Rs 1,500 crore of Tier-2 bonds in domestic Indian Bond markets.

These privately placed Bond are issued as unsecured, subordinated, rated, listed, non-convertible, fully paid-up, taxable, redeemable Basel III compliant tier-2 Bonds (in nature of debentures) at a face value of Rs 1 crore each and were raised through private placement on the NSE e-bidding platform.

The Bonds carry a rating of CRISIL AA+/ Stable from CRISIL Ratings Limited and IND AA+/Stable by India Ratings & Research Private Limited. IDFC FIRST Bank Tier-2 bond ratings were recently upgraded (in June 2023) to CRISIL AA+/Stable from CRISIL AA/Positive by CRISIL Ratings Limited.

The participation for the issuance came from domestic Qualified Institutional Investors. The bidding on NSE e-bidding platform witnessed healthy interest from Corporates, Public Pension Funds, Provident funds and insurance companies, and the overall issue was oversubscribed. The unsecured, Tier 2 Bonds were raised for a tenor of 10 years with a call option at the end of five years and carry a coupon of 8.40 per cent.

Including this capital raise, the capital adequacy of IDFC FIRST Bank, as computed on March 31, 2023 financials, would be 17.68 per cent, and will provide greater headroom for growth of the Bank.

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