November 22, 2024 07:56 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
PM Modi bestowed Dominica's highest award at India-CARICOM Summit | 69-year-old Delhi man, a St. Stephen's alumnus, arrested for conning govt officers by posing as ex-IPS | 'Baseless': Adani Group denies US charges of bribery and fraud against Gautam Adani | AAP's first list of candidates for Delhi polls feature six turncoats | PM Modi is incapable to arrest Gautam Adani: Rahul Gandhi after tycoon charged with bribery and fraud in the US
IDFC First Bank planning to raise Rs 3,000 crore in debt capital through Tier-ii bonds

IDFC First Bank planning to raise Rs 3,000 crore in debt capital through Tier-ii bonds

| @indiablooms | 11 Oct 2023, 12:42 am

Mumbai: After its recent equity capital infusion of Rs 3,000 crore, IDFC First Bank is now gearing up to raise the same amount through debt capital, specifically Tier-II bonds, Business Standard reported.

This fundraiser is aimed at bolstering the bank's business expansion efforts.

The bank has recently secured an additional rating of Rs 3,000 crore from CRISIL for its Tier-II bonds, the Business Standard report said.

However, it's important to note that this rating is primarily a preparatory step for potential Tier-II capital raising in the future, subject to growth prospects.

At present, there are no immediate plans for such a move, as the bank's capital adequacy stands at a robust level.

CRISIL has given an "AA+/Stable" to the proposed Tier-II Basel III compliant bond offering, and has reconfirmed this rating for the bank's other debt instruments.

In June 2023, the Mumbai-based private bank raised Rs 1,500 crore by issuing Tier-II bonds, with a maturity period of 10 years, a call option at the five-year mark, and carrying an interest rate of 8.4 percent.

Just recently, IDFC First Bank successfully raised Rs 3,000 crore in equity capital from institutional investors through a Qualified Institutional Placement (QIP).

This included the issuance of 330.40 million equity shares, each with a face value of Rs 10, at a price of Rs 90.25 per share. This figure included a premium of Rs 80.25 per equity share. The offering was open from October 3 to October 6, as per the filing with the BSE.

After the fresh capital raise, the bank's standalone capital adequacy ratio, based on the financials of June 30, would increase to 18.56 percent, the bank said in a statement.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.