NEWS
IDFC First Bank raises Rs 1,500 cr via tier-II bonds
IDFC First Bank raised Rs 1,500 crore through Basel-III compliant Tier-II bonds maturing in 10 years at a coupon rate of 8.40%.
IDFC First Bank raised Rs 1,500 crore through Basel-III compliant Tier-II bonds maturing in 10 years at a coupon rate of 8.40%.
IDFC First Bank raised Rs 1,500 crore through Basel-III compliant Tier-II bonds maturing in 10 years at a coupon rate of 8.40%.
The bonds have seen heavy demand from corporates, public pension funds, provident funds and insurance companies, and the overall issue was oversubscribed, the bank said.
“Including this capital raise, the capital adequacy of IDFC First Bank, as computed on March 31, 2023 financials, would be 17.68% and will provide greater headroom for growth of the bank,” the private lender added.
The bonds have a call option at the end of five years.
The bonds carry a rating of ‘AA+’ ratings with ‘Stable’ outlook by Crisil and India Ratings and Research.
IDFC First Bank Tier-2 bond ratings were upgraded in June 2023 to Crisil AA+/Stable from Crisil AA/Positive by Crisil Ratings.
