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IDFC First Bank raises ₹1500cr in domestic bond markets

June 28, 2023

IDFC First Bank raises ₹1500cr in domestic bond markets
IDFC FIRST Bank on Tuesday announced that it has raised ₹1,500 crore of tier-2 bonds in domestic Indian bond markets.

These privately placed bonds are issued as unsecured, subordinated, rated, listed, nonconvertible, fully paid-up, taxable, redeemable Basel III compliant tier-2 bonds (in nature of debentures) at a face value of ₹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 and IND AA+/Stable by India Ratings & Research. IDFC FIRST Bank’s tier-2 bond ratings were recently upgraded to CRISIL AA+/Stable from CRISIL AA/Positive by CRISIL Ratings.
 
The participation for the issuance came from domestic qualified institutional investors. The bidding on NSE e-bidding platform also 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 of March 2023 financials, would be 17.68%, and will likely provide greater headroom for growth of the bank.
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