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

IDFC FIRST Bank, has 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%.

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.

Shares of IDFC First Bank Limited was last trading in BSE at Rs. 78.22 as compared to the previous close of Rs. 77.76. The total number of shares traded during the day was 3362239 in over 10676 trades.

The stock hit an intraday high of Rs. 79.55 and intraday low of 78.00. The net turnover during the day was Rs. 264765611.00.

Source : Equity Bulls

Keywords

IDFCFirstBank INE092T01019 FundRaising Tier2 Bonds