IDFC FIRST Bank raises Rs 1,500 cr through tier-2 bond offering


IDFC FIRST Bank raised Rs. 1,500 crore through the private offering of Unsecured, Subordinated, Rated, Listed, Non-Convertible, Fully Paid-Up, Taxable, Redeemable Basel III Compliant Tier 2 Bonds (in the Nature of Debentures) with face values of Rs. 1 Crore each.

The Bonds will be redeemed in accordance with the terms of issue on their original maturity date of 10 years; however, a Call Option may be exercised at the sole discretion of the Bank after 5 years from the date of allotment and yearly thereafter, subject to compliance with existing regulatory provisions.

Domestic investors with significant subscription participation included Life Insurance Corporation of India, which subscribed to more than 60% of the issue size.

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On this occasion, Sudhanshu Jain, CFO and Head – Corporate Center, said, “We are delighted as this is the maiden Tier-2 issuance of bonds by the Bank since its inception. The initial issue size was of Rs. 1,000 Crore with a Green Shoe Option to retain oversubscription up to Rs. 500 Crore. I’m happy to say that the issue was oversubscribed to the maximum level by the marquee domestic investors including the Life Insurance Corporation of India (LIC) and this showcases the strong interest for our paper in the market. With this Tier2 capital raise, the capital adequacy would be enhanced to 16.5% (calculated on the financials as of 31st December 2021). We see strong credit demand in our business lines and such capital will help to boost our overall growth prospects.”

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