Allotment of 30,000 Lower Tier II NCDs aggregating ₹300 crore at 11.75% coupon
The bank has allotted 30,000 unsecured, subordinated, redeemable Lower Tier II bonds (NCDs) of ₹1,00,000 face value each, aggregating ₹3,00,00,00,000 (Rupees Three Hundred Crore), on a private placement basis.
By ScoutQuest · · 1 min read
- Issue Size
- ₹3,00,00,00,000 (Rupees Three Hundred Crore)
- Number of NCDs
- 30,000
- Face Value per NCD
- ₹1,00,000
- Coupon Rate
- 11.75% per annum, payable quarterly
- Tenure
- 7 years from date of allotment
What was announced
The bank's Capital Structuring & Fund Raise Committee approved the allotment of 30,000 rated, listed, unsecured, subordinated, redeemable Lower Tier II bonds in the form of Non-Convertible Debentures, on a private placement basis to eligible investors.
Key terms
- Face value: ₹ 1,00,000 per NCD
- Issue size: ₹ 3,00,00,00,000 (Rupees Three Hundred Crore)
- Coupon: 11.75 % per annum, payable quarterly
- Tenure: 7 (Seven) Years from the date of allotment
- Security: Unsecured, no charge created over assets
- Listing: Wholesale Debt Market segment of BSE Limited
What it means
Lower Tier II bonds are a form of subordinated debt that banks typically count towards regulatory capital. Raising such funds gives the bank additional capital resources to support lending, while adding a fixed interest obligation at 11.75% per annum payable every quarter for seven years.
These are debt instruments issued privately to eligible investors, so there is no change in the bank's equity share capital and no dilution for existing shareholders.
The update states there is no delay or default in payment of interest or principal, and no cancellation or termination of the proposed issuance.
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More numbers
- Number of NCDs allotted30,000
- Face value per NCD₹ 1,00,000/-
- Issue size₹ 3,00,00,00,000 (Rupees Three Hundred Crore)
- Coupon rate per annum11.75 %
- Tenure7 (Seven) Years
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