Allotment of Rs.500 crore Tier II NCDs at 9.95% coupon, 10-year tenure
The Bank allotted 50,000 Lower Tier II Bonds (NCDs) of face value Rs.1,00,000 each, aggregating Rs.500 crores, on a private placement basis.
By ScoutQuest · · 1 min read
- Issue Size
- Rs.500 crores
- Number of Bonds
- 50,000
- Face Value per Bond
- Rs.1,00,000
- Coupon Rate
- 9.95% per annum
- Tenure
- 10 years (Allotted September 25, 2026; Maturity September 25, 2036)
What was announced
The Bank has allotted debt securities to raise funds, following its earlier intimation dated September 16, 2026.
- Instrument: Rated, Listed, Unsecured, Subordinated, Transferable, Redeemable, Fully Paid Up Lower Tier II Bonds in the nature of Non-Convertible Debentures
- Number allotted: 50,000 bonds
- Face value: Rs.1,00,000 each
- Issue size: Rs.500 crores
- Mode: private placement
Terms
- Coupon rate: 9.95% per annum
- Interest payable per unit each year: Rs.9,950
- Tenure: Ten (10) years from the deemed date of allotment
- Date of allotment: September 25, 2026; date of maturity: September 25, 2036
- Redemption: bullet, at par, at Rs.1,00,000 per debenture plus interest accrued but not paid
- Listing: proposed on BSE Limited
What it means
Tier II bonds are a form of regulatory capital for banks. Raising Rs.500 crores through such subordinated bonds adds to the Bank's capital base, which can support lending growth. Being unsecured and subordinated, no charge is created over the Bank's assets, and these bondholders rank behind other creditors.
The instrument is debt, not equity, so there is no dilution for existing shareholders. The Bank will carry an annual interest obligation at 9.95% on this amount until maturity in 2036.
The update also records that there is no delay or default in payment of interest or principal, and that no special rights or privileges are attached to the instrument.
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More numbers
- Number of bonds allotted50,000
- Face value per bondRs.1,00,000/-
- Total issue sizeRs.500 crores
- Issue size (annexure)Rs. 500,00,00,000/-
- Coupon rate9.95%
- Annual interest payable per unit9,950
- TenureTen (10) years
- Redemption amount per debentureRs. 1,00,000/-
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