IDBI Bank raises Rs 1,900 crore

IDBI Bank raises Rs 1,900 crore

IDBI Bank has mobilised Rs 1,900 crore through issue of Basel III compliant tier II  bonds through two separate issues on private placement basis to strengthen its capital adequacy.

The first issue of Rs 1,000 crore concluded on December 31, 2015, was for a tenor of 15 years with call option at the end of 10 years while the second issue of Rs 900 crore was concluded on January 2, 2016, with a tenor of 10 years. Both the issues carry a coupon of 8.62 per cent per annum payable annually. These issuances aggregating Rs 1,900 crore would augment capital adequacy ratio of the bank by about 55 basis points, IDBI Bank said.

In December, State Bank of India (SBI) had raised Rs 4,000 crore by issuing tier II bonds on private placement basis under the Basel-III norms. Last week, Bank of India raised Rs 3,000 crore by issuing Basel-III compliant tier II bonds.