Federal Bank receives board’s go ahead to raise up to Rs 12,000 crore

Federal Bank

Kerala-based private lender Federal Bank has received its board’s approval on fund raising plans of up to Rs 12,000 crore, majority of which is likely to come via borrowing instruments.

Federal Bank

In its meeting on June 19 2020, the bank’s board of directors gave nod to the proposals pertaining to fund raising up to Rs 8,000 crore via various debt instruments in Indian/foreign currency and Rs 4,000 crore through a combine of debt and issue of equity shares, Federal Bank stated in a regulatory filing.

The lender stated that it will ask for shareholders’ approval for the fund raising plans in its upcoming annual general meeting on July 16, 2020, through a video conference or other audio visual means.

Also Read: Federal Bank launches Mobile ATM facility in Chennai and Mumbai

The fund raise will take place by way of any mode such as rights issue, private placement, qualified institutions placement, preferential issue, further public offer, global depository receipts, American depository receipts, foreign currency convertible bonds or through any other permissible mode or a combination thereof, said the lender.

The board also cleared the proposal for borrowing in Indian currency/in equivalent foreign currency by way of issue of debt instruments.

This including but is not limited to additional tier I bonds (AT1 bonds), tier II bonds, long term bonds (infrastructure and affordable housing), masala bonds, green bonds, non-convertible debentures or such other debt securities as may be permitted by RBI from time to time, up to Rs 8,000 crore in domestic market and/or overseas market, it said.

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