IDFC First Bank raises ₹1,500 crore of Tier 2 bonds

IDFC First Bank said 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, non-convertible, 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 bank said.

“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 bank added.

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 8.4%.

Including this capital raise, the capital adequacy of IDFC First Bank, as computed on March 31, 2023 financials, would be 17.68% providing greater headroom for growth.